Hyundai Motor India Ltd, which is able to come out with India’s largest preliminary public providing (IPO) of Rs 27,870 crore ($ 3.3 billion) on October 15, has proposed to take a position Rs 32,000 crore over the subsequent ten years as a part of its India progress technique.
The automaker is planning to take a position Rs 6,000 crore in a brand new plant in Pune which is able to enhance its capability from 0.824 million to 1.1 million, the corporate stated on Wednesday, including that the 30 per cent capability addition will enhance its home and export volumes. Hyundai will make investments aggressively in new merchandise, future know-how and analysis and growth capabilities of the India unit, in response to Unsoo Kim, Managing Director, Hyundai Motor India.
Hyundai expects India to be a fast-growing market and plans to make it a world manufacturing hub, he stated in Mumbai.
The Hyundai IPO would be the largest share providing within the historical past of the Indian capital market. The corporate has mounted the value band of the IPO within the vary of Rs 1,865 to Rs 1,960 per fairness share of the face worth of Rs 10, valuing the corporate at round Rs 1.5-1.6 lakh crore.
The IPO will shut on October 17. The allocation to anchor buyers for the IPO is scheduled to happen on October 14.
Public sector LIC’s IPO of Rs 21,000 crore in 2022 was the biggest IPO in India earlier than the Hyundai providing. Previous to this, PayTM launched a Rs 18,300 crore mega IPO in 2021.
Hyundai, the second largest automaker in India after Maruti, would be the first auto agency to go public in 20 years after Maruti Suzuki’s itemizing in 2003.
The IPO contains an Supply for Sale of as much as 14.21 crore fairness shares of face worth of Rs 10 every by the promoter promoting shareholder. Hyundai Motor Firm of South Korea will get your complete proceeds of Rs 27,870 crore ($ 3.3 billion).
The provide would represent 17.50 per cent of the post-offer paid-up fairness share capital of the corporate. “The promoter will likely be entitled to your complete proceeds of the provide after deducting its portion of the provide bills and related taxes thereon. Our firm is not going to obtain any proceeds from the provide,” the provide doc says.
In line with the provide doc, buyers can apply for at least one lot measurement or seven shares price Rs 13,720 and in multiples after that. The corporate has put aside 50 per cent of the web subject for certified institutional patrons or QIBs, 15 per cent for non-institutional buyers (NIIs) and 35 per cent for retail particular person buyers.
In line with the corporate, since 1998 and as much as March 31, 2024, the corporate has cumulatively bought practically 12 million passenger autos in India and thru exports. It’s the third largest auto OEM on the planet based mostly on passenger automobile gross sales in CY2023, in response to a CRISIL report.
Hyundai has been India’s largest exporter of passenger autos from fiscal 2005 to the primary 11 months of fiscal 2024, having exported the best cumulative variety of passenger autos for a similar interval, says the CRISIL report.
The corporate posted a complete earnings of Rs 71,302 crore for the 12 months ended March 2024 and a revenue of Rs 6,060 crore. The whole earnings stood at Rs 61,436 crore and revenue at Rs 4,709 crore for FY2023, in response to the prospectus.
