Hyundai Motor India Ltd (HMIL) is set to surpass state-owned LIC to become India's largest IPO in history. LIC's initial share sale was of Rs 21,000 crore. Hyundai Motor India, the Indian arm of South Korean automaker Hyundai, has fixed a price band of Rs 1,865-1,960 per share for its Rs 27,870 crore initial public offering (IPO) that opens for subscription on October 15.
Hyundai's initial share sale will conclude on October 17 and the bidding for anchor investors will open for a day on October 14, the company announced. The automaker commenced operations in India in 1996 and is selling 13 models across segments.
The proposed IPO is entirely an offer-for-sale (OFS) of 14,21,94,700 equity shares by promoter Hyundai Motor Company, with no fresh issue component. This development marks a significant milestone for the Indian industry, as it is the first initial share sale of an automaker in over two decades, following Japanese carmaker Maruti Suzuki's listing in 2003.
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The South Korean parent is diluting some of the stake through the OFS route. Since the public issue is completely an OFS, Hyundai Motor India Ltd, the second largest carmaker in India, after Maruti Suzuki India, will not receive any proceeds from the IPO.
HMIL stated that it expects that the listing of the equity shares "will enhance our visibility and brand image and provide liquidity and a public market for the shares". At the upper end of the price band, the IPO size has been pegged at Rs 27,870 crore and the company's market valuation at around Rs 1.6 lakh crore post-issue.
(With inputs from PTI)
