Hyundai Files RHP, IPO Price Band Set At Rs 1,865-1,960 Per Share

Hyundai Motor India, a subsidiary of South Korea's Hyundai Motor Company, has filed its red herring prospectus (RHP) with the Registrar of Companies on 8 October. The company is set to launch its Initial Public Offering (IPO) on Dalal Street from 15 October, comprising solely an offer-for-sale (OFS) with no fresh issue of shares.

The price band for Hyundai Motor India's IPO has been fixed between Rs 1,865 and Rs 1,960 per equity share, with a face value of Rs 10. The subscription window for the IPO will be open from Tuesday, 15 October, until Thursday,17 October. Allocation to anchor investors will take place on Monday, 14 October, a day before the public subscription begins.

Retail investors can bid for a minimum of 7 shares, with a minimum investment of Rs 13,720. For small non-institutional investors (sNII), the minimum investment is set at 15 lots, equating to 105 shares for Rs 205,800. Large non-institutional investors (bNII) can invest in a minimum of 73 lots, or 511 shares, amounting to Rs 1,001,560.

Hyundai Motor India has allocated 50 per cent of the shares for qualified institutional buyers (QIB), 15 per cent for non-institutional investors (NII), and 35 per cent for retail investors. Additionally, the company has reserved up to 778,400 shares for its employees, who will receive a discount of Rs 186 per share.

The allotment of shares will be finalised on Friday, 18 October, with refunds set to begin on Monday, 21 October. The shares will be credited to the allottees' demat accounts on the same day as the refunds. Hyundai Motor India is expected to list its shares on BSE and NSE on Tuesday, 22 October.

The offering includes 14.2 crore shares from Hyundai Motor Company's promoters as part of the OFS, without any fresh issue component. The IPO will be managed by Kotak Mahindra Capital Company, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), JP Morgan India, and Morgan Stanley India, while KFin Technologies has been appointed as the registrar.

Currently, Hyundai Motor India's grey market premium (GMP) stands at Rs 147, suggesting that the company's shares are trading at a premium in the grey market. Based on this premium, the estimated listing price could reach Rs 2,107 per share, reflecting a 7.5 per cent increase over the upper limit of the IPO price band.

Grey market premiums indicate investors’ willingness to pay more than the issue price ahead of the official listing.