Hyundai Motor India is set to make history with the launch of India’s largest-ever Initial Public Offering (IPO), opening for bidding from October 15 to 17, 2024. With an impressive IPO size of ₹27,870 crore, the shares will be listed on both the BSE and NSE, offering an exciting opportunity for investors. The price band has been set between ₹1,865 and ₹1,960 per equity share.
Retail investors can participate with a minimum bid of 7 shares, starting at ₹13,720, while high-net-worth individuals (HNIs) can place bids for a minimum of 105 shares, with larger bids potentially exceeding ₹1 million. The Grey Market Premium (GMP) currently stands at ₹75, indicating a potential listing price of ₹2,035 per share, promising an approximate gain of 3.83%.
The IPO is an Offer for Sale (OFS) of 142,194,700 shares, which will reduce Hyundai Motor Company’s stake from 100% to 82.50%. Hyundai Motor India, a key player in the domestic passenger vehicle market, faces competition from Tata Motors, Maruti Suzuki, Mahindra & Mahindra, and newer entrants like Kia Motors and MG.
Investors should take note of Hyundai Motor India’s strong reliance on its parent company, HMC, for essential parts and R&D, along with the 3.5% royalty it pays on revenue. While the relationship with HMC is crucial, Hyundai Motor India’s robust market presence and the promising GMP make this IPO a significant investment opportunity.