IPO IMPACT! Hyundai Motor shares hit record high as auto giant gears up to vroom into Indian stock market
ipo impact! hyundai motor shares hit record high as auto giant gears up to vroom into indian stock market
Hyundai Motor Share Price, Hyundai IPO: Shares of South Korean automaker Hyundai Motor hit a record high as investors bet on the company's plan to list its India arm.
Shares of Hyundai Motor rose as much as 6.3 per cent on Monday to 285,000 won ($206.47) and closed up 3.9 per cent -- a record high close. This also lifted the company's market capitalization to 58.3 trillion won.
Last week, Hyundai Motor India Ltd (HMIL), the Indian arm of South Korean automaker Hyundai, filed preliminary papers with SEBI launch an IPO. The company's IPO, if it goes through, would be the largest in India, surpassing LIC's share-sale of Rs 21,000 crore.
The proposed IPO is entirely an offer for sale (OFS) of 142,194,700 equity shares by Hyundai Motor Company, with no fresh issue component, according to the draft red herring prospectus (DRHP).
In February this year, sources had confirmed that the parent, Hyundai Motor Company is looking to raise at least USD 3 billion (around Rs 25,000 crore) through an IPO. It may dilute 15-20 per cent stake in HMIL to raise funds.
Since the public issue is completely an OFS, Hyundai Motor India Ltd, the second largest carmaker in India after Maruti Suzuki India, will not receive any proceeds of the IPO.
The development marks a significant milestone for the Indian industry as it will be the first initial share-sale by an automaker in over two decades, following Maruti Suzuki's listing in 2003.
In its draft papers, HMIL said 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".
Hyundai shares could list on the NSE and BSE by end of this year. Citigroup Inc., Kotak Mahindra Bank, JP Morgan Chase & Co, HSBC Holdings Plc and Morgan Stanley are the advisors for Hyundai IPO.
This is the first time that Hyundai Motor is eyeing to get listed on a stock exchange outside its home country South Korea.
Hyundai entered India almost 25 years ago and firmly established itself as the country’s second largest carmaker after Maruti Suzuki.