Considering the upper price band of Rs 1960, this is a premium of marginal 3% over the issue price. This is a sharp fall from a premium of Rs 570 two weeks ago when the shares started trading in the unlisted market.
However, it is important to note that grey market premiums are just an indicator as to how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.
The IPO will see the Korean parent Hyundai Motor Global offloading 14.2 crore shares of just over 17% stake in the local unit. At the upper end of the price band, Hyundai India will be valued at Rs 1.6 lakh crore.
This IPO will make Hyundai Motor India the first automaker to go public in two decades, following Maruti Suzuki’s listing in 2003.
Even though the entire proceeds from the IPO will go to the parent company, the management said funds will be used for research and development and new innovative offerings.Hyundai is the second largest carmaker in India with a portfolio of 13 passenger vehicle models across sedans, hatchbacks and SUVs. The company aims to leverage its strong local manufacturing capabilities to position itself as Hyundai Motor’s largest production base in Asia.It operates two production facilities in Chennai with a combined installed capacity of 8.24 lakh units per annum and is currently running at over 90%+ capacity utilization.
For the quarter ending June 2024, Hyundai Motor India reported a revenue of Rs 17,344 crore, marking a growth from Rs 16,624 crore in the same period last year. Of the total revenue, 76% was derived from the domestic market, while exports accounted for 24%.
The company’s net profit for the quarter stood at Rs 1,489.65 crore, compared to Rs 1,329.19 crore in the previous year.
Kotak Mahindra Capital, Citigroup Global, HSBC Securities, JP Morgan, and Morgan Stanley are the book running lead managers to the issue, while KFin Technologies is the registrar to the offer.
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