Hyundai Motor IPO next week? Check expected price band, GMP & other details

Amid the lack of action in the primary markets, Hyundai Motor India is likely to launch its mega IPO open next week, suggests a Reuter's report citing sources. The Indian arm of the South Korean auto major is likely to raise a little more than $3 billion or Rs 28,000 crore via IPO, which is likely to be the biggest public offering at Dalal Street.

The Reuters reports suggested that Hyundai may sell its shares in the price band of Rs 1,865-1,960 apiece, which values the automaker at $19 billion. Hyundai Motor India will be the first listing by the company outside South Korea. Also, it will be the first IPO by a carmaker after 2003, when Maruti Suzuki launched its primary stake sale.

Just to recall, Hyundai Motors India will not issue any fresh shares in the IPO and the primary stake sale will entirely be an offer for sale of up to 14,21,94,700 equity shares, or 17.5 per cent stake, by the South Korean parent. At the upper end of the given price band, the company may offload shares worth Rs 27,870 crore.

According to the report, the anchor book for Hyundai opens on October 14, Monday, and the three-day bidding for the issue shall commence on October 15, Tuesday. The issue will close for bidding on October 17, Thursday and the listing can be expected on October 22, Tuesday.

Hyundai is India's second largest carmaker in India after Maruti Suzuki and is looking to reclaim market share from domestic rivals by expanding its SUV lineup. It also plans to launch its first India-made electric vehicle early next year and introduce at least two gasoline-powered models tailored to the market starting in 2026, the report from Reuters added.

Amid the latest buzz over the IPO next week, the grey market premium (GMP) of Hyundai Motor India rose to Rs 280 apiece. However, the premium in the unofficial market stood at Rs 270-260 levels a day earlier. The GMP was around Rs 360-370 in the beginning of the month.

Incorporated in May 1996, Hyundai Motor India is a part of the Hyundai Motor Group, which is the third largest auto original equipment manufacturer (OEM) in the world based on passenger vehicle sales. The company provides mobility solutions, operating a network of 1,366 sales points and 1,550 service points across India.

The company 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.

Kotak Mahindra Capital Company, Citigroup Global Markets India, HSBC Securities & Capital Markets, JP Morgan India and Morgan Stanley India Company are the book running lead managers of the Hyundai Motor IPO, while Kfin Technologies is the registrar for the issue.