Next week is set to be a landmark moment for the Indian IPO market, as Hyundai Motor India’s highly anticipated Rs 27,870-crore IPO is scheduled to hit Dalal Street on October 15. This will be one of the biggest public offerings in Indian history, alongside two other IPOs from smaller companies. The offering follows major IPOs like Life Insurance Corporation of India’s Rs 21,008 crore issue in 2022, Paytm's Rs 18,300 crore issue in 2021, and Coal India's Rs 15,199 crore offer in 2010.
The Hyundai Motor India IPO stands out as the largest public offering from a car manufacturer in India. The company, India’s second-largest carmaker, aims to raise around $3.3 billion (Rs 27,870 crore). The price band is set between Rs 1,865 and Rs 1,960 per share, with the issue opening on October 15 and closing on October 17. Ahead of the public issue, the Rs 8,315 crore anchor book—targeting up to 60% of institutional investors—will open on October 14.
This IPO is structured entirely as an offer-for-sale of 14.2 crore equity shares by Hyundai's South Korean parent company, which is valuing its Indian subsidiary at Rs 1.59 lakh crore. A special reservation of 7,78,400 shares has been set aside for Hyundai Motor India employees, who will be able to purchase them at a Rs 186 discount per share.
As of now, Hyundai’s IPO shares are trading at a modest 5-7% premium over the upper price band, according to market observers, a drop from the 15-20% premium seen earlier. Experts have pointed out that while the IPO appears fairly priced, there are concerns about high inventory levels in the automobile industry.
Next week will also feature the launch of two other IPOs:
Lakshya Powertech IPO: This Rs 50 crore public issue will open on October 16 and close on October 18. The price band is set between Rs 171-180 per share. Lakshya Powertech’s shares will debut on NSE Emerge on October 23.
Freshara Agro Exports IPO: Specializing in processing and exporting pickled vegetables, Freshara Agro will launch a Rs 75.4 crore IPO on October 17, with a price band of Rs 110-116 per share. The issue will close on October 21, and its shares will list on NSE Emerge on October 24.
Additionally, Pranik Logistics will close its Rs 22.5 crore public issue on October 14, with shares listing on October 17. Listings of Garuda Construction and Engineering and Shiv Texchem are also expected on October 15, while Pranik Logistics shares will debut on NSE Emerge on October 17.
The Indian IPO market is gearing up for a busy period, with several companies, including NTPC Green Energy, Swiggy, and Mobikwik, expected to follow suit soon.