Hyundai IPO, worth Rs 27,870 crore, open for subscription till Oct 17

Hyundai Motor India’s Initial Public Offering (IPO), worth Rs 27,870 crore, opened for subscription on October 15. The issue is available till October 17 and it comprises an Offer For Sale (OFS) of 14,21,94,000 equity shares sold by Hyundai Motor Global. The shares will be listed on October 22.

The price of a share was Rs 65 in the unlisted market before the IPO was launched, at a minor premium of 3.3 per cent. At 3:48 pm IST on October 15, the Grey Market Premium (GMP) premium for the stock had reached Rs 55, compared to Rs 45 earlier in the day.

In a nutshell, Hyundai India’s IPO looks all set to be India’s largest so far. It could be bigger than even the Life Insurance Corporation (LIC) IPO of May 2022 that was worth Rs 21,000 crore. Hyundai’s is also one of Asia’s largest IPOs in recent times. The issue size is Rs 26,505 to Rs 27,856 crore, with a face value of Rs 10 and a price band of Rs 1,865 to Rs 1,960. Employee Reservation is up to 7,78,400 shares and employee discount is Rs 186 for a share. The Bid Lot is seven shares or multiples thereof. The cap price is equal to or less than 120 per cent of the floor price, and 105 per cent of the floor price in the least.

Hyundai Motor India’s sales figures grew at a Compound Annual Growth Rate (CAGR) of 19.4 per cent between FY21 and FY24, while Profit After Tax (PAT) registered increase at the rate of 47.7 per cent during the same period. The company has also seen a steady surge in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin.

In the Indian passenger vehicle market, Hyundai is at position number two, behind Maruti Suzuki. The South Korea-origin motor giant also ranks second in terms of exporting cars from India. Hyundai India’s market is mainly driven by Sport Utility Vehicles (SUVs) that yield high margins. Hyundai SUV range comprises Creta, Alcazar and Venue. That apart, the sedan Verna and the hatchbacks i10 and the i20 have big markets.