Hyundai Motor India is poised to launch what is anticipated to be India’s largest initial public offering (IPO) on October 15. This landmark IPO, exclusively structured as an offer for sale, involves South Korean automotive giant Hyundai Motor Company divesting up to 14,21,94,700 equity shares. Shares will be available in a price range of Rs 1,865 to Rs 1,960, with a minimum subscription of seven shares and multiples thereof. The offering will close on October 17.

At the top end of its price bracket, Hyundai aims to generate Rs 27,855 crore, setting the record for the largest IPO in the Indian market. Founded in May 1996 and headquartered in Chennai, Hyundai Motor India is a subsidiary of Hyundai Motor Group, the world's third-largest vehicle manufacturer by passenger volume. The company not only sells cars but also produces key components like transmissions and engines.

The proceeds from this IPO will go directly to its South Korean parent company, not benefiting the Indian subsidiary directly. The anchor book for the IPO will open on the preceding day, October 14. Post-IPO, Hyundai Motor India is expected to reach a market capitalization of Rs 1.6 lakh crore.

Hyundai Motor India operates an extensive network throughout the country, including 1,366 sales outlets and 1,550 service centers. The company has sold nearly 12 million passenger vehicles domestically and internationally across regions such as Africa, the Middle East, and several South Asian countries. It collaborates with 363 dealer companies for its distribution and sales within India.

The company’s product line includes a variety of four-wheeler passenger vehicles, such as sedans, hatchbacks, SUVs, and electric vehicles. Prominent models include the Grand i10 NIOS, i20, i20 N Line, AURA, Elantra, Venue, Venue N Line, Verna, Creta, Creta N Line, Alcazar, Tucson, and the Ioniq 5 electric SUV.

In financial terms, Hyundai Motor India reported a net profit of Rs 1,489.65 crore and revenue of Rs 17,567.98 crore for the quarter ending June 30, 2024. For the fiscal year ending March 31, 2024, the net profit was Rs 6,060.04 crore with a revenue of Rs 71,302.33 crore.

The IPO includes a special allocation of 7,78,400 equity shares for company employees, who will receive a discount of Rs 186 per share. Fifty percent of the IPO is reserved for qualified institutional bidders (QIBs), 15% for non-institutional investors (NIIs), and 35% for retail investors.

The IPO is managed by Kotak Mahindra Capital, JP Morgan India, Citigroup Global Markets India, HSBC Securities & Capital Markets, and Morgan Stanley India Company, with Kfin Technologies serving as the registrar. The shares are scheduled to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on October 22.