Hyundai Motor India Limited (HMIL) is set to launch its initial public offering (IPO) on 15 October 2024. The company is a prominent player in the global auto market and part of the Hyundai Motor Group and will offer its equity shares to investors for the first time. The price band for the offering has been fixed between INR 1,865 and INR 1,960 per share, with bids available in multiples of seven shares. The IPO will close on 17 October 2024.
The IPO consists of an offer for the sale of up to 142,194,700 equity shares by Hyundai Motor Company. However, the company will not receive any proceeds from this sale, with the raised funds benefiting the promoter instead.
Hyundai is taking this step in accordance with Rule 19(2)(b) of the Securities Contracts (Regulation) Rules and SEBI regulations. The offering will be conducted via the book-building process. Institutional buyers will have access to 50% of the offer, with the remainder allocated to non-institutional investors and retail investors.
The company’s shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE). The bidding process for anchor investors will commence on 14 October, one day before the official launch of the IPO.
Hyundai Motor India’s decision to go public marks a significant step in its business strategy as it seeks to diversify its financial structure. The company has not disclosed the specific plans for the raised funds but is expected to continue its focus on manufacturing and sales expansion in the Indian market, where it has a significant presence.
Book running lead managers for the offering include Kotak Mahindra Capital, Citigroup Global Markets India, HSBC Securities, J.P. Morgan India, and Morgan Stanley India.
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