Hyundai Motor India’s largely awaited Rs 25,000- crore original public immolation( IPO) will probably open for subscriptions coming week, with a price band set at Rs 1,865- 1,960 per share, reported Reuters citing sources. At the upper end of this price range, the South Korean automaker's India unit is anticipated to be valued at nearly$ 19 billion, marking it the country’s largest public issue.
The$ 3 billion Hyundai Motor India IPO will open for subscriptions from institutional investors on October 14, followed by retail and other investors from October 15 to 17, said the Reuters report Hyundai Motor India's stock is likely to get listed on stock exchanges NSE and BSE on October 22.
Hyundai Motor India's public issue will involve no fresh issue of shares, with the establishment's South Korean parent unpacking up to 17.5 percent of its stake in the wholly possessed Indian attachment through an offer for trade( OFS) route. The IPO is poised to come India’s largest bus sector listing since Maruti Suzuki’s IPO in 2003, marking a significant corner for Hyundai Motor India.
With Indian stock requests reaching record highs in recent months and a swell in IPOs across diligence, Hyundai Motor India’s immolation is anticipated to garner strong interest from both institutional and retail investors, given the company's dominant position in the Indian bus request. Hyundai Motor India was India's second largest carmaker after Maruti Suzuki in FY24 in terms of passenger deals volumes.
Hyundai Motor India had filed its draft red herring prospectus( DRHP) in June, securing blessings from the Securities and Exchange Board of India( SEBI) soon after. The company, targeting a valuation of over to$ 19 billion, aims to boost its visibility and brand image with the table in the domestic request, while also furnishing liquidity for its shares. The IPO is anticipated to surpass former records, including the Rs 21,000- crore($ 2.7 billion) public immolation by Life Insurance Corporation( LIC) in 2022.
Hyundai Motor will continue to hold 82.5 percent equity stake in Hyundai Motor India post the IPO, it said. On Korean stock exchange, parent company Hyundai Motor's share price has returned over 34 percent earnings in the last one time, significantly outperforming standard KOSPI indicator, which has gained about 10 percent.
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