Hyundai Motor India Limited, a part of the Hyundai Motor Group and the third largest auto OEM in the world by passenger vehicle sales in 2023, plans to open its initial public offering (IPO) of equity shares on Tuesday, October 15, 2024. The company aims to sell up to 142,194,700 equity shares through this offering, with the price band for the shares set between INR 1,865 and INR 1,960 per share. The window for bids will remain open until Thursday, October 17, 2024.
The IPO also allocates not less than 15% of the net offer to Non-Institutional Investors. This category is divided where one-third is available for bidders applying for shares worth more than INR 200,000 and up to INR 1,000,000, while two-thirds are for bids exceeding INR 1,000,000. Any under-subscription in one sub-category can be reallocated to the other within the Non-Institutional Category, provided valid bids meet the offer price.
“Further, not less than 35% of the Net Offer shall be available for allocation to Retail Individual Investors (“Retail Category”), in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price.”
Anchor Investor Bidding Date
The Anchor Investor Bidding Date is set for Monday, October 14, 2024, a day before the official opening of the IPO. Bids can be made for a minimum of 7 equity shares and multiples of 7 thereafter. The IPO is structured as an offer for sale, meaning that Hyundai Motor Company, the promoter selling shareholder, will be receiving all the proceeds, not Hyundai Motor India Limited. The company adheres to the stipulations of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended, along with Regulation 31 of the SEBI ICDR Regulations.
Qualified Institutional Buyers
The IPO will be conducted through the Book Building Process in line with Regulation 6(1) of the SEBI ICDR Regulations, which means that bidding will determine the final price of the shares. A maximum of 50% of the net offer will be allocated to Qualified Institutional Buyers (QIBs), which may include up to 60% for Anchor Investors as determined by the company and the Book Running Lead Managers (BRLMs). One-third of the Anchor Investor portion is reserved for domestic mutual funds, contingent on valid bids at or above the Anchor Investor Allocation Price.
“Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis only to Mutual Funds, subject to valid Bids being received at or above the Offer Price, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price,” stated the company.
Equity shares
Both retail investors and employees will also have portions reserved. Equity shares will be allocated to eligible employees on a proportionate basis through the Employee Reservation Portion, provided valid bids come at or above the offer price. Additionally, all bidders, except for Anchor Investors, must participate through the Application Supported by Blocked Amount (ASBA) process. This requires providing bank account details where the bid amount will be blocked by Self Certified Syndicate Banks (SCSBs) or sponsor banks.
Listing of the company
The equity shares of Hyundai Motor India Limited are planned to be listed on BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE). The Company’s plan follows a well-defined regulatory pathway ensuring transparency and adherence to the guidelines defined by the Securities and Exchange Board of India (SEBI).
Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, HSBC Securities and Capital Markets (India) Private Limited, J.P. Morgan India Private Limited, and Morgan Stanley India Company Private Limited are appointed as the Book Running Lead Managers (BRLMs) for the offer.
