Hyundai Motor India set to launch Rs 27,870-cr IPO on October 15

New Delhi: Hyundai Motor India said that it has fixed a price band of Rs 1,865-1,960 per share for its Rs 27,870 crore initial public offering (IPO) that opens for subscription on October 15.

The company held a roadshow for its IPO, which would be the largest in India, surpassing LIC's initial share sale of Rs 21,000 crore.

HMIL's initial share sale will conclude on October 17 and the bidding for anchor investors will open for a day on October 14, the company said.

The proposed IPO is entirely an offer-for-sale (OFS) of 14,21,94,700 equity shares by promoter Hyundai Motor Company (HMC), with no fresh issue component.

This is the first initial share sale of an automaker in over two decades, following Japanese carmaker Maruti Suzuki's listing in 2003.

The South Korean parent is diluting some of the stake through the OFS route. Since the public issue is completely an OFS, Hyundai Motor India, the second largest carmaker in India, after Maruti Suzuki India, will not receive any proceeds from the IPO.

HMIL stated that it expects that the listing of the equity shares "will enhance our visibility and brand image and provide liquidity and a public market for the shares".

At the upper end of the price band, the IPO size has been pegged at Rs 27,870 crore and the company's market valuation at around Rs 1.6 lakh crore post-issue.

The company further said that enquiries and bookings in October so far have been strong compared to September with the first eight days of this month witnessing a growth of 30%.

HMIL said it is also looking to launch the Creta EV in the March quarter of the current fiscal, while four other EVs are lined up for the next few years.