New Delhi: The IPO of Hyundai Motor India Limited (HMIL) will open on October 15. The price range of this IPO will be Rs 1,865-1,960 per share. This will be India’s largest IPO. Its size is Rs 27,870 crore. Earlier, LIC’s IPO was the largest. Its amount was Rs 21,000 crore. Hyundai Motor India Limited (HMIL) is the Indian unit of South Korea’s leading automobile company Hyundai. Its IPO of Rs 27,870 crore (about $3.3 billion) will open on October 15. The company gave this information on Wednesday.
What is the price band?
The price band for the IPO has been fixed at Rs 1,865-1,960 per share. This will be the largest IPO in India. Earlier, the IPO size of public sector insurance company Life Insurance Corporation of India (LIC) was Rs 21,000 crore.
Apart from these, One97 Communications, the parent company of Paytm in India, had launched an IPO of Rs 18,300 crore in November 2021. Coal India Limited had launched an IPO of Rs 15,199 crore in October 2010.
Reliance Power launched an IPO of Rs 11,563 crore in January 2008. General Insurance Corporation of India had come with an IPO of Rs 11,176 crore in October 2017.
The company said that the IPO of HMIL will close on October 17. Anchor (large) investors will be able to bid for shares on October 14.
The company said the proposed IPO is entirely based on an offer for sale (OFS) of 14,21,94,700 equity shares by promoter Hyundai Motor Company.
Why is this IPO important?
This IPO is important for Indian industry. The reason is that after two decades, an automobile manufacturing company is launching its IPO. Earlier, Japanese vehicle manufacturing company Maruti Suzuki had brought IPO in 2003.
Parent company Hyundai is selling some of its stake through the OFS route. Since this public issue is purely OFS, HMIL will not receive any proceeds from the IPO.
HMIL said it expects the listing of equity shares to increase its visibility and brand identity. Liquidity and public market will be available for shares.
With this mega IPO, Hyundai Motor India wants to take advantage of the strong demand for its vehicles in the country. The company expects to attract significant interest from investors through this offering.
The IPO size at the upper price range is pegged at Rs 27,870 crore and the market valuation of the company is pegged at around Rs 1.6 lakh crore (about $19 billion) post-issue.
HMIL started operations in India in 1996 and is selling 13 models across different segments.