Hyundai India to dilute 17.5% of its stake in its latest IPO

Hyundai India has reserved shares for various types of investors, with retail investors to receive 35 per cent of total shares. Institutions such as b
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Hyundai
Hyundai India will reportedly dilute 17.5 per cent of its stake and has reserved shares for various types of investors. (AP)
Hyundai
Hyundai India will reportedly dilute 17.5 per cent of its stake and has reserved shares for various types of investors.

Hyundai India, in its latest Initial Public Offering (IPO), is set to dilute approximately 17.5 per cent of its stake, the company informed the SEBI in a filing on Tuesday. The IPO includes an Offer for Sale of up to 142,194,700 equity shares, each with a face value of 10.

The company has allocated shares to various types of investors. According to the filing, the retail investors are set to receive 35 per cent of the total shares, amounting to not less than 49,768,145 equity shares with a face value of 10 each. This category includes individual investors who invest up to two lakh.

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The Qualified Institutional Buyers (QIBs) are slated to receive up to 50 per cent of the equity shares, totalling not more than 71,097,350 shares, each with a face value of 10. It includes banks, insurance companies, and mutual funds. These institutional investors possess the expertise and financial capacity to carefully assess and invest in capital markets.

Also Read : Hyundai stocks soar on record IPO plan for India unit

The Non-Institutional Bidders (NIBs) will be allocated 15 per cent of the shares. This category includes High Net-worth Individuals (HNIs), Non-Resident Indians (NRIs), trusts, companies, and societies. NIBs, by their nature, have significant financial resources to invest in such offerings.

Hyundai India has also clarified that it does not currently have any employee stock option schemes in place as of the date of this draft IPO offer.

On the financial performance of the company, Hyundai India reported that the weighted average return on net worth for the three financial years 2021, 2022, and 2023 stands at 19.53 per cent. Specifically, the return on net worth for the year 2023 was recorded at 23.48 per cent. The performance highlights the company's financial health.

Also Read : Ola Electric SEBI's nod to launch IPO worth 5,500 crore

By diluting 17.5 per cent of its equity, Hyundai is opening up ownership to a broader investor base, which includes retail investors, QIBs, and NIBs. It will help the company to enhance its capital structure and provide the necessary funds for future expansion and growth initiatives.

First Published Date: 19 Jun 2024, 06:53 AM IST
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