Hyundai Motor IPO: The country’s largest IPO has opened. This IPO is of Hyundai Motor India. This IPO, launched on October 15, is worth Rs 27,856 crore. The last date to place bets on this is Thursday, October 17. Let us tell you that in the IPO, there is an offer-for-sale (OFS) of 14,21,94,700 equity shares of parent company Hyundai Motor. It is estimated that Hyundai Motor would be earning a whopping 196 times or 19,500 percent return on its investment in the company.
Understand according to upper band
Hyundai Motor India’s RHP said the weighted average cost of acquisition (WACA) per equity share for its promoter selling shareholder Hyundai Motor Company was Rs 10. This means that the parent company is making a profit of 196 times or 19,500 percent of the upper limit of the price band. The upper band of the issue price is Rs 1960.
What does the brokerage say?
According to Business Today news, brokerage firms have a positive outlook on the IPO. The brokerage suggests subscribing for the long term citing good financial records, strong brand recall, expansion plans, strong market share and focus on premiumization of products. However, points like declining cash storage, large issue size, possible stake sale in future are negative.
Country’s biggest IPO
This will be the biggest IPO in the Indian market. Earlier, the size of the IPO of public sector insurance company Life Insurance Corporation of India (LIC) was Rs 21,000 crore. Apart from these, One97 Communications, the parent company of Paytm in India, had brought an IPO of Rs 18,300 crore in November 2021. Apart from this, Coal India Limited had launched an IPO of Rs 15,199 crore in October 2010. At the same time, Reliance Power launched an IPO of Rs 11,563 crore in January 2008 and General Insurance Corporation of India launched an IPO of Rs 11,176 crore in October 2017.
