Hyundai Motor India is gearing up for its much-anticipated Initial Public Offering (IPO), set to be one of the largest in India’s history. Here are the latest details and key highlights that investors should know before the subscription window opens.

Hyundai Motor India IPO Dates

The subscription for the Hyundai Motor India IPO is scheduled to open on October 15, 2024, and will remain open until October 17, 2024. This provides a brief three-day window for potential investors to bid for shares in one of the country’s largest automakers.

Price Band and Issue Size

The shares are priced in a range of ₹1,865 to ₹1,960 per equity share, providing investors with an indication of the IPO’s valuation. The total issue comprises 142,194,700 equity shares through an Offer for Sale (OFS) by the promoter, Hyundai Motor Company. The issue size is approximately ₹27,870.16 crores, making it one of the biggest IPOs in India’s market history.

Minimum Lot Size and Face Value

Investors must apply for a minimum of 7 shares, and in multiples thereafter, which means the minimum investment starts at ₹13,720. Each equity share has a face value of ₹10.

Listing and Allotment Dates

The shares are expected to be listed on October 22, 2024, on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The allotment date for successful bidders will be closely watched as this listing is likely to generate significant market interest.

Retail Investor and Employee Reservation

For retail investors, 35% of the total issue is reserved, ensuring that individual investors get a significant portion of the allocation. Additionally, Hyundai Motor India has reserved 7,78,400 equity shares for its employees, available at a discount.

Financial Performance of Hyundai Motor India

For the fiscal year ending 2024 (FY24), Hyundai Motor India reported ₹71,302 crores in revenue with a Profit After Tax (PAT) of approximately ₹6,060 crores. These figures indicate the financial strength of the company, which has consistently performed well in India’s competitive automotive market.

Purpose of the IPO

Since this is an Offer for Sale (OFS), all the proceeds will go to the selling shareholder, Hyundai Motor Company, rather than the Indian subsidiary. This means the funds raised will not be used for Hyundai Motor India’s operational expansion or growth directly.

Investment Insights

Market analysts have noted that while the issue is fully priced, Hyundai Motor India’s market position as a leading automaker, along with its growth trajectory driven by ongoing expansions, makes it a potentially strong investment for long-term holders. The company’s established brand presence and robust financials are appealing, but investors should carefully consider the valuation before making decisions.

Conclusion

The Hyundai Motor India IPO is poised to make waves in the stock market with its substantial size and the prominence of the company in India’s automotive sector. Investors are advised to evaluate the company’s financials, market conditions, and the latest updates before participating in this highly anticipated IPO. Always consult the IPO prospectus or seek advice from financial experts before making investment decisions