The Indian IPO market is to achieve a landmark next week with Hyundai Motor India’s much-awaited maiden initial public offering of ₹ 27,870 crore lined up to open on Dalal Street on October 15. This would be one of the biggest-ever IPOs in Indian history and will be accompanied by two other IPOs from smaller companies. One of the many glittering IPOs will be this one, after LIC’s ₹21,008 crore issue in 2022, Paytm’s ₹18,300 crore issue in 2021, and Coal India’s ₹15,199 crore listing way back in 2010.
The Hyundai Motor India IPO will be the largest public issue by an automobile company in India. Hyundai, which is the country’s second-largest carmaker, is raising around $3.3 billion, or ₹27,870 crore. The issue price for the shares falls in the range of₹1,865 to ₹1,960. As of Thursday, October 15, and Friday, October 17, the issue opens and closes, respectively. A day before the public opening on October 14, there will be an anchor book worth ₹8,315 crore targeting up to 60% institutional investors.
The IPO is a pure offer for sale to raise around ₹14.2 crore equity shares by Hyundai’s South Korean parent, which valued its Indian unit at ₹1.59 lakh crore. In addition, 778,400 shares have been kept aside as a special allocation to be sold off to Hyundai Motor India employees at a discount of ₹186 per share.
Hyundai’s IPO shares currently command a relatively modest premium in the range of 5-7% over the upper price band, with the premium levels falling from the 15-20% noted earlier. According to experts, though the IPO looks to be reasonably priced, concerns over high inventory in the automobile sector still prevail.
The next week will also see the launch of two additional IPOs:
Lakshya Powertech IPO
Lakshya Powertech’s ₹50 crore public issue will open on October 16 and will close on October 18. Its price will be in the range of ₹171 to ₹180 per equity share. Lakshya Powertech shares are expected to list on NSE Emerge on October 23.
Freshara Agro Exports IPO
Specializing in the processing and exporting of pickled vegetables, Freshara Agro will begin a ₹75.4 crore IPO on October 17, with a price band of₹110 to₹116 per share. This issue will close on October 21 and will list its shares on NSE Emerge on October 24.
Pranik Logistics is also closing on Oct 14 with the public issue of ₹22.5 crore, shares, which will be listed on October 17; Garuda Construction and Engineering and Shiv Texchem share listing expected on October 15; while Pranik Logistics shares are to be listed on NSE Emerge on October 17.
The Indian IPO market is warming up for a busy period, with some marquee companies in the fray—all of them making headlines. These include NTPC Green Energy, Swiggy, and Mobikwik, among others.
