Hyundai Motors India IPO: Set to Launch After Dussehra, Poised to Be India’s Biggest IPO

Hyundai Motors India IPO: Key Updates on the Highly Anticipated IPO

Hyundai Motors India Limited (HMIL) is gearing up for one of the most awaited initial public offerings (IPOs) in the Indian market. Recent reports suggest that the Hyundai Motors India IPO could open for public subscription soon after the Hindu festival of Dussehra. Investors and market watchers are eager for the official announcement, as this IPO could mark a major event in India’s auto sector.

IPO to Open on October 14

According to reports from leading financial news outlets, the IPO is expected to open for subscription on October 14, 2024. The price band, which will give investors an idea of the share price range, is likely to be announced by mid-next week. Meanwhile, there is already a buzz in the grey market, indicating strong demand for Hyundai Motors India’s IPO even before the official launch.

Regulatory Approval and Grey Market Premium

Hyundai Motors India Limited has recently secured approval from the Securities and Exchange Board of India (SEBI), a necessary regulatory step before an IPO can proceed. This approval has paved the way for the company to finalize its plans for launching the IPO.

Reports from Investorgain.com show that shares of Hyundai Motors India have already started gaining traction in the grey market, with a premium of ₹350. This suggests high investor confidence in the IPO and expectations of strong market performance post-listing.

Hyundai Motors India: A Brief Overview

Hyundai Motors India is the Indian subsidiary of South Korea’s automotive giant, Hyundai Motor Company. It started operations in India in 1996, and over the years, it has become one of the key players in the country’s automotive market. Currently, the company offers 13 models across various segments, ranging from small cars to SUVs. Hyundai Motors India has established itself as a strong competitor to Maruti Suzuki, Japan’s leading automaker in India.

Hyundai Motors

Interestingly, this IPO marks the first time in two decades that a major automotive manufacturer has launched an IPO in India. The last automotive IPO of such magnitude was from Maruti Suzuki, which was listed in 2003. Since then, no other major automaker has come to the Indian stock market with such a high-profile public offering.

Biggest IPO in India’s History?

The Hyundai Motors India IPO is poised to be one of the largest IPOs ever in the country. The South Korean automaker plans to raise a minimum of $3 billion (approximately ₹25,000 crore) through this public offering. If successful, it would surpass the current record held by Life Insurance Corporation of India (LIC), whose IPO in 2022 raised ₹21,000 crore, making it the largest in India’s history until now.

Key IPO Details

The draft red herring prospectus (DRHP) for Hyundai Motors India’s IPO was filed in June 2024. According to the IPO documents, the entire offering will be an Offer for Sale (OFS), where the company’s promoter, Hyundai Motor Company, will sell 14.21 crore shares. This means that no fresh equity shares will be issued, and the proceeds from the IPO will go directly to the selling shareholders, primarily the promoter.

The IPO is expected to attract significant interest from both retail and institutional investors, given Hyundai’s strong market presence and reputation. The proceeds from the Offer for Sale could provide Hyundai Motor Company with additional capital to invest in its global operations and expansion plans.

IPO Expectations and Market Buzz

The anticipation around the Hyundai Motors India IPO is already building, with strong indications of a high level of subscription once it opens for bidding. The grey market premium of ₹350 signals positive sentiment and suggests that the IPO might see considerable oversubscription, which often leads to strong post-listing performance on the stock exchanges.

Investors are particularly excited because of Hyundai’s established brand, its robust product lineup, and the growth potential of India’s automobile sector. Hyundai’s success in capturing significant market share in India, coupled with its strong sales figures, makes it an attractive investment opportunity for both retail and institutional investors.

In summary, the Hyundai Motors India IPO could be a game-changer for the Indian stock market and is being seen as a key event in the automotive industry. With the potential to raise up to ₹25,000 crore, it would not only be the largest IPO in the country’s history but also a significant milestone for Hyundai in its global expansion strategy.

Investors are eagerly waiting for the official launch, and with strong demand in the grey market, Hyundai Motors India IPO is shaping up to be one of the biggest stock market events of the year.