New Delhi : Hyundai Motor India Limited, one of the leading car companies in India's automobile sector, is preparing to launch its IPO in the Indian market soon. The company has informed on Wednesday that on October 15, the company is going to launch an IPO worth Rs 27,870 crore i.e. about $3.3 billion in the market. The price per share for this IPO has been fixed between Rs 1,865-1,960.
This will be the largest IPO in India. Earlier, the size of the IPO of public sector insurance company Life Insurance Corporation of India i.e. 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.
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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. The company said that the IPO of HMIL will close on October 17. Anchor i.e. big investors will be able to bid for shares on October 14. The company said the proposed IPO is entirely based on an offer for sale (OFS) of 14,21,94,700 equity shares by the promoter Hyundai Motor Company.
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HMIL will not get IPO amount
This IPO is important for the Indian industry, because after 20 years a motor manufacturing company is launching its IPO in the market. Earlier, Japanese motor manufacturing 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 purely OFS, HMIL will not receive any proceeds from the IPO.
public market available
HMIL said it expects the listing of equity shares to 'enhance our visibility and brand image and provide liquidity and public market for the shares.' With this huge IPO, Hyundai Motor India wants to take advantage of the strong demand for its vehicles in the country. The company expects the offering to “attract significant interest from investors”. At the upper price range, the size of the IPO is estimated at Rs 27,870 crore and the market valuation of the company after the issue is estimated at around Rs 1.6 lakh crore i.e. about $ 19 billion. HMIL started operations in India in 1996 and is selling 13 models across different segments.
(with agency input)
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