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Hyundai Motors India Ltd to raise around Rs 8,315 crore from anchor investors on October 14

Manasi Singh October 09, 2024 12:27 PM

On October 14 Hyundai Motors India Ltd is scheduled to offer 42.42 million shares, therefore generating around Rs 8,315 crore from anchor investors. Open for registration from October 15 to October 17, the company’s Initial Public Offering (IPO) will have a price range set at Rs 1,866 to Rs 1,960 per share.

Designed as a pure offer-for- sale, this IPO would see the promoters sell around 142.19 million shares to generate a total of Rs 27,870 crore. Of this, the Qualified Institutional Buyers (QIB) section will be around Rs 5,543 crore; the non-institutional segment would be worth Rs 4,158 crore; and the retail segment will include 49.5 million shares, valued at over Rs 9,701 crore.

The company’s market capitalization is estimated to be roughly Rs 1.60 lakh crore based on the higher pricing range. October 18 marks the last day for deciding Hyundai Motors India’s IPO’s basis of allocation. With the company’s listing on the stock markets slated for October 22, refund requests will be started and equity shares will be credited to investor accounts on October 21.

Since 2009, Hyundai Motors India, a division of Hyundai Motor Group, the third-largest carmaker in the world by passenger vehicle sales in 2023, has maintained its second ranking in India.

With 13 models—including sedans, hatchbacks, SUVs, and electric vehicles—the brand is well-known for its emphasis on innovation, quality, and technology. For both its own cars and for sale, Hyundai also makes necessary components like engines and gearboxes.

Hyundai Motors India said in the quarter ended June 2024 that its revenue was Rs 17,344 crore, up from Rs 16,624 crore in the same period previous year. Of the whole income, the domestic market accounted for 76% and exports accounted for 24%. Comparatively to last year, the company’s net profit for the quarter was at Rs 1,489.65 crore instead of Rs 1,329.19 crore.

Lead managers to the issuance include Kotak Institutional Equities, Citigroup Global Markets, HSBC Securities and Capital Markets, JP Morgan India, and Morgan Stanley India.