Hyundai Motor India’s Record-Breaking IPO Set to Rev Up the Indian Stock Market
In a groundbreaking move, Hyundai Motor India is poised to start trading on the country’s two major stock markets, following a whopping $3.3 billion initial public offering (IPO). This monumental event marks the largest-ever IPO in India by amount raised, setting the stage for a thrilling ride in the Indian stock market.
A Closer Look at the IPO
The automaker offered 142.19 million shares at a price band of 1,865 Indian rupees ($22.18) to 1,960 rupees. With the shares priced at the top end of the band, the entire offering is valued at 278.56 billion rupees, or $3.3 billion. The IPO has been oversubscribed by over two times, indicating strong investor interest.
A Unique Listing Approach
Unlike traditional IPOs, where a company sells fresh shares, Hyundai Motor India’s listing is an offer for sale, where its parent company, Hyundai Motor Company, sold its shares. This approach highlights the company’s confidence in its Indian subsidiary’s growth prospects.
Market Optimism
Analysts have expressed optimism about the Indian IPO market, citing supportive policies from the Securities and Exchange Board of India (SEBI), increased retail participation, and broad-based opportunities. This sentiment is echoed by Neil Bahal, founder of Negen Capital, who expects a “record-breaking year for India with a significant number of IPOs and private equity exits.”
Trading Begins
Hyundai Motor India’s shares will start trading on the New Delhi-based National Stock Exchange (NSE) and the Mumbai-based Bombay Stock Exchange (BSE). The lead bookrunners of the IPO include Kotak Mahindra Capital, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), J.P. Morgan India, and Morgan Stanley India.
As the Indian stock market gears up for this record-breaking IPO, investors and analysts alike are watching with bated breath. Will Hyundai Motor India’s listing live up to expectations and set the tone for a thriving IPO market in India? Only time will tell.
Leave a Reply