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Hyundai Motor India, the second-largest car manufacturer in the country, has set a price range of Rs 1,865 to Rs 1,960 per share for its Rs 27,870-crore IPO, set to launch on October 15. The company, a subsidiary of South Korea's Hyundai Motor Company, is valued at Rs 1.59 lakh crore at the upper price band. Post-IPO, the parent firm will retain an 82.5% stake in its Indian arm.
The Hyundai Motor India IPO is an offer-for-sale (OFS) of 14.2 crore equity shares by its promoter, Hyundai Motor Company, with no fresh issue component. The proceeds (excluding expenses) will go directly to the parent company, with the primary aim of listing on Indian stock exchanges. This will be the biggest IPO in India's automotive sector since Maruti Suzuki's listing in 2003.
Investors can bid in multiples of seven shares, starting with a minimum investment of Rs 13,720 for a single lot, and retail investors can invest up to a maximum of Rs 1,92,080 (14 lots, 98 shares). Institutional investors can participate in the anchor book on October 14, while the IPO will close on October 17. Of the net issue size, 50% is reserved for qualified institutional buyers, 15% for non-institutional investors, and 35% for retail investors. Hyundai employees will have access to 7,78,400 equity shares at a discounted price of Rs 186 per share.
This IPO will be India's largest since the Rs 21,000-crore issue by Life Insurance Corporation of India (LIC) in 2022. Hyundai Motor India currently offers 13 models, including sedans, hatchbacks, SUVs, and electric vehicles, and reported sales of 1.92 lakh vehicles in the June 2024 quarter, up from 1.83 lakh in the same period last year. For the fiscal year 2024, the company sold 7.77 lakh vehicles, compared to 7.2 lakh in fiscal 2023.
Financially, Hyundai Motor India posted a net profit of Rs 6,060 crore for the year ending March 2024, a 28.7% increase from the previous year, with revenue growing 15.8% to Rs 69,829 crore. In the first quarter of fiscal 2025, revenue rose 4.3% to Rs 17,344.2 crore, while net profit increased 12.1% to Rs 1,489.6 crore.
Kotak Mahindra Capital Company, Citigroup Global Markets India, HSBC Securities, JP Morgan India, and Morgan Stanley India are the lead managers for the IPO.
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