The IPO of the world’s largest auto maker Hyundai Motor India Limited (HMIL) is being eagerly awaited in India. This IPO is being considered very important in many ways. One thing is that after Maruti Suzuki, it is the first company whose IPO is coming in the stock market. Secondly, this IPO is also being said to be the biggest IPO of the country. The third thing is that Hyundai is bringing its IPO in a country other than its own for the first time. Let us also tell you what kind of updates have come out regarding this IPO.
Here are the important details of IPO
The issue size of Hyundai Motor India Limited is Rs 27,870 crore (about $ 3.3 billion). This IPO will open for the general public on October 15. The price band for the IPO has been fixed at Rs 1,865-1,960 per share. HMIL, the Indian unit of South Korean company Hyundai, presented the outline of its proposed IPO on Wednesday. This IPO will close on October 17, while anchor i.e. key investors will be able to bid for shares on October 14. The company said that the proposed IPO is entirely based on the offer for sale (OFS) of 14,21,94,700 equity shares by the promoter company Hyundai Motor.
Before this, these companies have brought big IPOs
This will be the biggest IPO in the Indian market. Earlier, the size of the IPO of public sector insurance company Life Insurance Corporation of India (LIC) was Rs 21,000 crore. Apart from these, One97 Communications, the parent company of Paytm in India, had come up with an IPO of Rs 18,300 crore in November 2021. Apart from this, Coal India Limited had launched an IPO of Rs 15,199 crore in October 2010. Reliance Power launched an IPO of Rs 11,563 crore in January 2008 and General Insurance Corporation of India launched an IPO of Rs 11,176 crore in October 2017.
Roadshow organized
Hyundai Motor India also organized a roadshow event to create awareness about its IPO. Meanwhile, HMIL Chief Operating Officer (COO) Tarun Garg said that the company expects very good growth in demand for cars in the current festive season and is not worried about the global challenges facing the automobile industry. He said that India is a very strong market for growth, which is continuously growing. He said that there will always be some kind of softness and ups and downs. Anyway, we have always looked at the months of June, July, August, September due to heat and other reasons. But now we have entered the festive season.
India is an important market of the world
HMIL Managing Director (MD) and Chief Executive Officer (CEO) Unsoo Kim said in the roadshow that India is the most exciting market in the world. We benefit from the extensive global ecosystem of our parent company Hyundai Motor Company, which gives it a strategic and competitive edge over its competitors. He said that this is the right time to make Hyundai’s operations more Indian. The IPO will ensure that the company is even more dedicated to success in the domestic market while providing growth to shareholders and investors.
The valuation will be this much
HMIL started operations in India in 1996 and is selling 13 models across different segments. This IPO is important for the Indian industry because after two decades an automobile manufacturing company is launching its IPO. Earlier, Japanese auto maker company Maruti Suzuki had brought IPO in 2003. Parent company Hyundai is selling some of its stake through the OFS route. Since this public issue is completely based on OFS, hence HMIL will not get any amount from this IPO. At the upper price band, the IPO size is estimated to be Rs 27,870 crore and the market valuation of the company after the issue is estimated to be around Rs 1.6 lakh crore (about $ 19 billion).
Comments are closed.