Hyundai Motor India Ltd. (HMIL) announced India’s largest ever initial public offer (IPO) of ₹27,870 crore on Wednesday. Bids for the IPO will be open between October 15 and October 17.
The IPO consists of an offer for sale for 14.2 crore equity shares by the promoter and involves no fresh issue of share. The proceeds of the offer will be received by the promoter firm. The price band has been fixed between ₹1,865 and ₹1,960 a share.
The IPO will dilute 17.5% of the promoter shareholding. This will further increase to 25% in the next three to five years, to comply with the minimum public shareholding norms of the Securities and Exchange Board of India (SEBI), the company said.
Increase in price of inputs, and dependence on limited number of suppliers are key risk factors, according to the prospectus. The share of parts sourced from outside India has increased to 19% in Q1 2024-25, from about 17.55% in 2022.
HMIL is the second largest automobile company in India with a market share of 15% in Q1 this year, after Maruti Suzuki, which has the largest market share of 41%, according to its Red Herring Prospectus.
“We are the largest exporter on a cumulative basis since the last two decades. So we have a double engine growth; domestic and foreign,” said Tarun Garg, chief operating officer, HMIL. Hyundai has plans to introduce three new electric vehicles in the current financial year.
This is among the world’s first automobile IPOs in about two decades, HMIL’s top brass said. If succesful, this would be the largest ever IPO in the Indian market, eclipsing the ₹21,000 crore raised by the Life Insurance Corporation of India in 2022. Paytm, with a ₹18,300 crore offering in 2021, and Coal India’s ₹15,000 crore IPO in 2010, were the other large share sales.
Published - October 10, 2024 12:23 am IST
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