Hyundai Motor India To Launch IPO On October 15, 2024; Price Band Set At ₹1,865–₹1,960 Per Share: All You Need To Know

Hyundai Motor India Limited (HMIL) is set to launch its Initial Public Offering (IPO) on October 15, 2024. The IPO price band has been fixed between ₹1,865 and ₹1,960 per equity share, with a face value of ₹10 each. This marks a significant moment for the Indian capital market, as Hyundai, the second-largest car manufacturer in India, opens its doors to public investors.

The three-day IPO will close on October 17, 2024, while anchor investors can place bids a day earlier on October 14, 2024. Investors can place bids for a minimum of seven equity shares and in multiples of seven thereafter. This IPO, structured as an offer for sale (OFS) of up to 142,194,700 equity shares by Hyundai Motor Company, means the company itself will not receive any direct proceeds. Instead, the promoter shareholder—Hyundai Motor Company—aims to reduce its stake in its Indian subsidiary by selling its shares.

Also Read: Hyundai Motor India Confirms IPO

The IPO is being made through the book-building process under the Securities and Exchange Board of India (SEBI) regulations, with Kotak Mahindra Capital, Citigroup Global Markets, HSBC Securities, J.P. Morgan, and Morgan Stanley serving as the Book Running Lead Managers (BRLMs). The equity shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

The offer for sale is being conducted under SEBI’s Regulation 6(1), which ensures that the allocation of shares is spread across various categories of investors:

Qualified Institutional Buyers (QIBs): Not more than 50 per cent of the total offer is reserved for QIBs. Up to 60 per cent of this portion may be allocated to anchor investors, one-third of which is reserved for domestic mutual funds. 

Non-Institutional Investors (NIIs): 15 per cent of the offer is reserved for this category. The NII segment is further divided into two sub-categories, with one-third available for investors with application sizes between ₹200,000 and ₹1,000,000, and the remaining two-thirds for larger investors.

Retail Investors: 35 per cent of the net offer is set aside for retail individual investors, subject to bids being placed at or above the offer price.

Also Read: SEBI Greenlights Hyundai India's IPO Bid: Report

Employees: HMIL employees can also participate under a reserved portion, with shares being allocated on a proportionate basis, provided they meet the bid price. All categories of investors (except anchor investors) must place their bids through the Application Supported by Blocked Amount (ASBA) process, ensuring that the bid amount is blocked in the investor's account until the shares are allotted.

Hyundai Motor India is one of the most prominent carmakers in India, trailing only Maruti Suzuki in terms of market share. The company, known for popular models such as the Creta, Venue, and i20, holds an approximate 15 per cent share in the country’s passenger vehicle market, making it a dominant force in the industry.

Globally, Hyundai Motor Group ranks as the third-largest automaker based on passenger vehicle sales, according to a 2023 CRISIL report. The decision to go public comes amidst Hyundai's ambition to expand further in the electric vehicle (EV) market and enhance its production capabilities in India. This IPO offers investors the opportunity to participate in one of the fastest-growing segments in India's automotive industry, with a company backed by a global powerhouse.