Hyundai Motor India IPO opens with high hopes for Dalal Street
MUMBAI MUMBAI: Hyundai Motor India’s initial public offering (IPO) opened for retail investors on Tuesday. The company aims to raise up to Rs 27,870 crore, which will be the Indian equity market’s biggest IPO ever since 2022, when Life Insurance Corporation of India (LIC) raised Rs 21,000 crore.Open till October 17, the IPO price band has been fixed at Rs 1,865 to Rs 1,960 per share. One lot of Hyundai Motor India’s IPO consists of seven shares.
After the subscription window closes, share allotment is expected to be finalised on October 18. The shares will be credited to demat accounts on October 21. Hyundai Motor India shares are likely to debut on stock exchanges on October 22.The first share sale will be a pure offer for sale (OFS). This is the first offering by an automaker to be listed in India in over two decades and the entire proceeds will go to the promoter.
Hyundai Motor India on Monday raised about Rs 8,315 crore from anchor investors ahead of its IPO. According to a company statement, the company allotted 4.24 crore shares to 225 anchor investors at a price of Rs 1,960 per share. Hyundai Motor India achieved 14.6 per cent market share in the domestic passenger vehicle (PV) market in the first quarter of FY25, second only to Maruti Suzuki, which has a 41 per cent share in the category. However, Hyundai is the market leader by volume in the mid-size SUV segment with a share of about 38 per cent by June 2024. It is also the second-largest PV exporter from India from April 2021 to June 2024.
Last fiscal, the company sold 7.77 lakh vehicles, of which 21 per cent were exported to countries such as Africa, Middle East, Europe and Latin America. The company has 1,366 sales outlets and 1,550 service outlets in the country. Hyundai Motor India’s revenue in the financial year (FY) 2023-24 was Rs 69,829 crore. During this period, the company earned a profit of Rs 6,060 crore and the company’s margin was 13.1 percent. In the first quarter of the financial year 2024-25, the company’s revenue was Rs 17,344 crore. During this period, the company earned a profit of Rs 1,489 crore and the margin was 13.5 percent.
