At Rs 27,800 crore, Hyundai Motor makes India's largest IPO even bigger
Mumbai: Encouraged by the strong demand for several recent initial public offerings (IPOs), Hyundai Motor India, the country's second-largest carmaker, has increased its issue size by more than a tenth to ₹27,800 crore, up from the initially planned ₹25,000 crore, investment banking sources told ET.
The offering is set to open for subscription on Tuesday, October 15, sources said.
This will be India's largest public issue, surpassing the previous record set by the ₹21,008-crore public issue of the state-owned Life Insurance Corporation of India in May 2022.
Hyundai Motor India is likely to sell the shares at a price band of ₹1,865 - 1,960 apiece. At the upper range of the price band, the company is valued at $19 billion, up from the earlier estimate of $18 billion, sources said. The issue will close on October 17.
India's largest passenger car company, Maruti Suzuki, is valued at $47.53 billion. The other two listed carmakers - Mahindra & Mahindra and Tata Motors - are valued at $43.46 billion and $27.60 billion, respectively.
Hyundai India filed its red herring prospectus on Tuesday The public issue will consist entirely of an offer-for-sale (OFS) of up to 142.2 million shares, representing a 17.5% stake, by its South Korean parent, Hyundai Motor Co. Hyundai Motors is valued at $46.34 billion.
The company filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) in June and got approval from the market regulator last month.
In 2023, India accounted for 13% of Hyundai Motor's global unit sales and contributed 6% to the group's revenue and profit.
Hyundai's India unit had a market share of 14.5% in FY24 in the passenger car segment compared with Maruti Suzuki's 41.7% and 13.8% of Tata Motors, as per SIAM data.
India's primary market has been breaking several records this year. Last month, the ₹6,560-crore public issue of Bajaj Housing Finance was subscribed 64 times, attracting bids totalling nearly ₹3.23 lakh crore - the highest-ever demand in Indian primary market history. Additionally, all five recent public issues, including Diffusion Engineers, KRN Heat Exchange, Manba Finance, Northern Arc, and Arkade Developers, were oversubscribed more than 100 times.
So far in 2024, 62 companies have raised ₹64,510 crore compared to ₹49,436 crore raised by 57 companies in 2023.
Kotak Investment Banking, Citi, HSBC, JP Morgan, and Morgan Stanley are the book running lead managers for the Hyundai India IPO.
