Hyundai Motor India is all set to launch its initial public offering (IPO) next week, that is on Tuesday, October 15, which is said to be the biggest IPO of the Indian stock market, dwarfing the funds raised by Life Insurance Corporation of India and One 97 Communications (Paytm).
Amid the rising charm for primary offerings, Hyundai Motors India's IPO marks a significant milestone as it will be the first time since 2003, when a car maker goes public after Maruti Suzuki. Here are the top 10 things that one should know about the mammoth IPO of Hyundai Motor India:
1. Price Band and lot size
Hyundai Motors India will be selling its shares in the range of Rs 1865-1,960 per share. Investors can apply for a minimum seven equity shares and its multiples thereafter.
2. Issue type size
The IPO of Hyundai Motor India is entirely an offer-for-sale (OFS) of up to 14,21,94,700 equity shares by its South Korea parent Hyundai Motor Company. At the upper end of the price band, the company is looking to raise a total of Rs 27,856 crore via its IPO.
3. Valuation
At the upper end of the price band, the company is valuing itself at 1.59 lakh crore or $19 billion. Earlier, the valuation was estimated at Rs 1.5 lakh crore or $18 billion.
4. Allocation
Hyundai Motor India has reserved 7,78,400 equity shares for the eligible employees of the company, who will get a discount of Rs 186 per share. 50 per cent of the net offer shall be reserved for qualified institutional bidders (QIBs), 15 per cent non-institutional investors (NIIs) and 35 per cent for the retail investors of the issue.
5. Key Models
Hyundai Motor India manufactures and sells four-wheeler passenger vehicles, including models such as sedans, hatchbacks, SUVs, and electric vehicles (EVs). The company's models include the Grand i10 NIOS, i20, i20 N Line, AURA, Elantra, Venue, Venue N Line, Verna, Creta, Creta N Line, Alcazar, Tucson, and the all-electric SUV Ioniq 5.
6. Exports Markets
Hyundai Motor India has sold nearly 12 million passenger vehicles in India and through exports to Africa, the Middle East, Bangladesh, Nepal, Bhutan and Sri Lanka. It has partnered with 363 dealer companies for distribution and sales in India. The company provides mobility solutions, operating a network of 1,366 sales points and 1,550 service points across India.
7. Latest GMP
After the announcement of the price band officially, the grey market premium (GMP) of Hyundai Motor India has plunged sharply to Rs 111 per share, suggesting mild gains of about 6 per cent to the investors. However, the premium in the unofficial market stood at Rs 270 apiece a couple of days ago, while it was around Rs 400 at the beginning of October.
8. Anchor Book
Anchor books for the issue shall open on Monday, October 14, a day before the issue opens for the general public. The issue will kick off on Tuesday, October 15 and can be subscribed for three-day. The bidding closes for issue on Thursday, October 17.
9. Important Dates
The company is likely to finalize the allotment of shares on October 18, Friday and the process of refund is likely to be completed by October 21, Monday. Shares of Hyundai Motor India are likely to get listed at the bourses on October 22, Tuesday.
10. BRLMs & Registrar Kotak Mahindra Capital, JP Morgan India, Citigroup Global Markets India, HSBC Securities & Capital Markets and Morgan Stanley India are the book running lead managers of the Hyundai Motor IPO, while Kfin Technologies has been appointed as the registrar for the issue.