Hyundai Motor India fixes price band for its Rs27,870-cr IPO at Rs1,865-1,960 per share

Hyundai Motor India has set a price band of Rs1,865-1,960 per share of Rs10 face value for its IPO, which is considered as India’s biggest, so far, by any company.

An offer of all-new shares, the Rs27,870-crore IPO is a pure offer-for-sale whereby the South Korean parent Hyundai Motor Co will offload 142 million shares, or 17.5 per cent of Hyundai Motor India’s total equity.

Anchor investors will bid for the issue on 14 October, while the three-day issue will open for subscription on 15 October and close on 17 October 2024.

Fifty per cent of the issue has been reserved for Institutional Investors (QIB) and 15 per cent for non-institutional investors (NII) while 35 per cent of the IPO has been allocated for retail investors.

Eligible employees of the company bidding for the issue will be offered a discount of Rs186 per share.

The IPO size has been arrived at on the basis of the Rs1,960 upper end of the price band of the issue.

Investors can bid for a lot of seven shares or multiples of seven.

Hyundai Motor India, the second largest OEM and the second largest exporter of passenger vehicles in India. It has a 14.6 per cent share in the domestic market.

Hyundai India sold 64,201 units in September 2024, which is 10 per cent lower compared to sales in the corresponding month last year. Sales in the April-September 2024 stood at 5.77 lakh units, nearly unchanged from last year.