There were 07 main board IPOs in October 2024 of Godavari Biorefineries Limited, Deepak Builders and Engineers India Limited, Waaree Energies Limited, Hyundai Motor India Limited, Garuda Construction and Engineering Limited, Diffusion Engineers Limited, KRN Heat Exchanger and Refrigeration Limited, as against 13 main board IPOs in September 2024. There were 05 SME IPOs in October 2024 as against 07 SME IPOs in September 2024.
Indian markets are seeing the best ever year for IPOs with a string of successful IPOs. This is because of bullish sentiments in market post pandemic recovery & deepening of investor base.
Hyundai Motor Company Limited:
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About the Company |
Established in 1967, Hyundai Motor Company is present in over 200 countries with more than 120,000 employees dedicated to tackling real-world mobility challenges around the globe. Hyundai Motor is accelerating its transformation into a Smart Mobility Solution Provider. The company invests in advanced technologies such as robotics and Advanced Air Mobility (AAM) to bring about revolutionary mobility solutions, while pursuing open innovation to introduce future mobility services. |
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Funds Utilization |
Hyundai plans to continue its dedication to India, with plans to invest in new products, advanced technologies, and R&D capabilities. The company aims to localize the electric vehicle (EV) supply network in India, including battery systems, cells & drive systems, as part of its plan to pioneer future technology. Hyundai reaffirms its commitment to social responsibility in India, with initiatives like ‘Samarth by Hyundai’ campaign and the establishment of the Hyundai Motor India Foundation. |
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Concerns |
Hyundai IPO is a complete Offer for Sale (OFS), and the proceeds of the sale will go to the selling shareholders, rather than to the company. This structure allows existing shareholders to exit, a practice some criticize. In secondary market transactions, companies do not make any additional revenue from the sale of shares, as they are simply transferred between shareholders. |
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IPO Performance |
The record $ 3.3 billion IPO was oversubscribed more than two-fold, led largely by institutional investors. The stock, listed at Rs 1,934 on NSE, below its offer price of Rs 1,960, & fell as much as 7.6% before closing at Rs 1,820. That valued the company at Rs 1.48 trillion ($17.6 billion). The IPO valued Hyundai at 26 times its earnings for FY24, not far off Maruti’s multiple of 29. |
Funds Mobilization by Corporates (Rs. In Crore)
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Particulars |
Aug-24 |
Sept-24 |
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I. Equity Issues |
32,451 |
50,964 |
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a. IPOs (i+ii) |
15,464 |
16,213 |
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i. Main Board |
14,700 |
14,825 |
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ii. SME Platform |
769 |
1,388 |
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b. FPOs |
0 |
0 |
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c. Equity Rights Issues |
3,346 |
671 |
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d. QIPs/IPPs |
12,282 |
21,483 |
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e. Preferential Allotments |
1,360 |
12,597 |
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II. Debt Issues |
79,857 |
1,29,017 |
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a. Debt Public Issues |
445 |
1,695 |
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b. Private Placement of Debt |
79,411 |
1,27,322 |
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III. REITs/ InvITs |
400 |
6,666 |
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a. REITs |
0 |
0 |
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b. InvITs |
400 |
6,666 |
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Total Funds Mobilized (I+II+III) |
1,12,714 |
1,86,647 |
Acknowledgements:
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
Disclaimer:
This material has been prepared by the personnel in Vora Corporate Finance which is Investment Banking arm of Vora Management Consultancy Private Limited and looks after Mergers & Acquisitions (M&A), Private Equity (PE), Fund Raising, Debt syndication and Valuations and is based out of Ahmedabad, Gujarat, India. Any views or opinions expressed herein are solely that of individual authors and may differ from view of Vora Management Consultancy Private Limited. This material is proprietary to Vora Management Consultancy Private Limited and is for your personal use only. Any distribution, copy, reprints or forward to others is strictly prohibited.
This material captures the information based on information available in the public domain, public announcements and sources believed to be reliable. Analysis contained herein is based on publicly available information and appropriate assumptions. This material is intended merely to highlight market developments and is not intended to be comprehensive and does not constitute strategic, investment, legal or tax advice. In no event Vora Management Consultancy Private Limited be liable for any use by any party or for any decision made or action taken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained herein and such information may not be relied upon by you for evaluating any transaction.