Hyundai IPO Allotment Status: IPO Subscribed 2.37x on Last Day

Hyundai IPO was subscribed 2.37 times on the last day of bidding. The public issue subscribed 0.50 times in the retail category, 6.97 times in QIB, and 0.60 times in the NII category. Hyundai IPO allotment has been scheduled for October 18, 2024. Hyundai Motor IPO is a book-built issue of ₹27,870.16 crores, which is entirely an offer for sale of 14.22 crore shares.

Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, HSBC Securities & Capital Markets Pvt Ltd, J.P. Morgan India Private Limited and Morgan Stanley India Company Pvt Ltd are the book-running lead managers of the Hyundai Motor IPO.

Hyundai Motors to Invest ₹1,500 Crore

Hyundai Motor India, a subsidiary of the Korean automotive giant Hyundai, has submitted a pre-feasibility report (PFR) for the revamp and modernisation of its facility in Tamil Nadu, with an investment of ₹1,500 crore. This expansion at the existing plant in Irungattukottai will create approximately 155 new jobs, increasing the facility’s size from 5.40 lakh square meters to 7.21 lakh square meters.

The company plans to expand the factory by adding 1.81 lakh square meters of land. The Irungattukottai manufacturing facility, covering 538 acres, currently has the capacity to produce 8.50 lakh cars annually.

According to the report, the planned revamp will boost the built-up area to 7.21 lakh square meters without altering the production capacity. Currently, the plant employs around 18,706 workers, and the expansion is expected to result in a modest increase in headcount.

Hyundai clarified that there will be no additional land acquisition; the total project site spans 21.78 lakh square meters, with the built-up area expanding as mentioned.

The estimated cost of the expansion is ₹1,500 crore, and the project is anticipated to be completed within five years, pending necessary approvals for construction to begin.

With growing demand for passenger cars in domestic and international markets, this expansion aims to address market needs while positively impacting the environment and employment opportunities. The project is expected to contribute to socio-economic development by generating both direct and indirect employment for the local community.

Currently, Hyundai Motor India operates 1,366 sales points and 1,551 service centers across the country, offering a range of vehicles including hatchbacks, compact SUVs, premium SUVs, and electric models. The company exports its products to 88 countries across Africa, the Middle East, Latin America, Australia, and the Asia-Pacific region.

Following a successful IPO, the Hyundai Motor Share Price will be closely watched during its stock market listing, shaping investor sentiment.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.