Hyundai Motor India Limited (HMIL), the Indian unit of South Korea’s leading automobile company Hyundai Motor, has announced its much-awaited IPO. This IPO will open for bidding or subscription on October 15. Hyundai Motor India gave this information on Wednesday. According to PTI news, the company has fixed the price band of Rs 1,865-1,960 per share in this IPO. The special thing is that this IPO will be the biggest IPO in India.
IPO will close on October 17
According to the news, if we talk about the largest IPO in India, earlier the size of the IPO of public sector insurance company Life Insurance Corporation of India (LIC) was Rs 21,000 crore. The IPO of South Korea’s leading automobile company will close on October 17. Anchor (large) investors will be able to bid for shares on October 14. The company said the proposed IPO is entirely based on an offer for sale (OFS) of 14,21,94,700 equity shares by promoter Hyundai Motor Company.
The last automobile company’s IPO came in 2003.
This IPO is important for the Indian industry because after two decades an automobile manufacturing company is launching its IPO. Earlier, Japanese automobile manufacturing company Maruti Suzuki had brought IPO in 2003. Parent company Hyundai is selling some of its stake through the sale offer route. Since this public issue is purely OFS, HMIL will not receive any proceeds from the IPO.
Visibility and brand image will increase
HMIL said it expects the listing of equity shares to enhance our visibility and brand image and provide liquidity and public market for the shares. The IPO size at the upper price band is pegged at Rs 27,870 crore and the market valuation of the company is pegged at around Rs 1.6 lakh crore post-issue. HMIL started operations in India in 1996 and is selling 13 models across different segments.
