Hyundai India IPO: Dates Announced For India's Largest Offering So Far
Hyundai India will launch what is seen as India's largest IPO on Oct. 15. The anchor portion will open for subscription on Oct. 14. A listing is likely on Oct. 22.
(Photo: Company)
Hyundai Motor India Ltd. will launch what is seen as India's largest initial public offering on Oct. 15. The anchor portion will open for subscription on Oct. 14. A listing is likely on Oct. 22.
The three-day Hyundai India IPO is a pure offer-for-sale by South Korean parent Hyundai Motor Co. On offer are 14.2 crore shares, equivalent to 17.5% stake in the company. While a price band hasn't been declared yet, Bloomberg, citing sources, said that the price range is seen at Rs 1,865-1,960. At that price, the Hyundai India IPO will be India's largest at Rs 27,870 crore—eclipsing LIC's a few years ago.
India’s markets regulator—the Securities and Exchange Board of India—approved the draft red-herring prospectus last week with observations. A red herring prospectus has now been published.
Hyundai Motor Co., which entered the subcontinent with its best-selling Santro in 1998, is the second-largest carmaker today with 15% market share. It’s the only foreign player surviving in a hyper-competitive market dominated by Maruti Suzuki India Ltd. American carmakers Ford Motor Co. and General Motors Co. bowed out after years of attempting to carve out a piece of the world’s third-largest auto market.
A Hyundai India IPO would make the South Korean automaker the first carmaker to list in India since Maruti Udyog Ltd. in 2003. A successful listing will also peg Hyundai India’s market capitalisation at half of its parent’s $47 billion valuation in Seoul.
Nomura says the car maker deserves a valuation premium over Maruti Suzuki India Ltd. This is due to its market dynamics, especially considering Maruti's ongoing market share decline.
Nearly one in four Hyundai cars is sold in India now. The company has been consistently clocking 60,000 units per month for some time now, except the last few months as the industry faces slowdown.
