Hyundai Motor India is set to launch the country’s largest-ever initial public offering (IPO) on October 15, aiming to raise Rs 27,856 crore. The IPO marks a significant milestone for the Indian unit of South Korean automaker Hyundai Motor, as it seeks to make its debut in the stock market.
Ahead of the mega IPO, Hyundai Motor India’s shares have seen a sharp decline in the grey market. The grey market premium (GMP) has dropped by over 50% in the past week, falling to Rs 170 as of October 11, down from Rs 370 on October 4. That’s a striking 54% plunge from the October 4 levels.
IPO details and Investor Participation
The three-day public offer will open for subscription on October 15 and close on October 17. Investors can bid for one lot of seven shares, with subsequent bids in multiples of seven.
The company will offer shares priced between Rs 1,865- Rs 1,960 per share through a complete Offer For Sale (OFS), with its parent company selling 14.2 crore shares, representing 17.5% of the total equity.
The IPO will have 50% of its issue reserved for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for retail investors. Hyundai Motor India shares will have a face value of Rs 10 each, and the company is offering a discount of ₹186 per share to eligible employees.
Anchor Investors and Global Interest
The IPO has attracted significant interest from both local and international institutional investors, with the anchor portion fully allocated. According to a Bloomberg report, global investment giants such as BlackRock Inc. and Singapore’s sovereign wealth fund GIC Pte have already placed bids for Hyundai Motor India’s stock.
The anchor book, consisting of 4.24 crore shares, has been split evenly between domestic and international investors, underscoring the global appeal of the offering.
Market Position and Recent Performance
Hyundai Motor India is the second-largest original equipment manufacturer (OEM) and exporter of passenger vehicles in India, holding a 14.6% share of the domestic market.
However, the company reported a 10% year-on-year decline in sales for September, delivering 64,201 units. Year-to-date, Hyundai has sold 5.77 lakh units, flat compared to the previous year.
The IPO, set to break records in the Indian market, has garnered significant attention from both institutional and retail investors.