Winning Bizness Desk

Mumbai. Hyundai Motor India is set to launch the country's largest IPO next week, with the price band expected to range between Rs 1,865 and Rs 1,960 per share. This will value the company at approximately Rs 1.6 lakh crore, aiming to raise Rs 25,000 crore through the offering. The IPO will open for institutional investors on October 14 and for retail investors on October 15, remaining open for bidding until October 17. This IPO will surpass the size of the previous largest IPO in India, which was Life Insurance Corporation (LIC)'s Rs 21,000 crore offering, setting a new record in the Indian market.

The IPO is notable as it marks the first from a car manufacturer in India since Maruti Suzuki's offering in 2003. Hyundai Motor India's parent company, based in South Korea, plans to sell a 17.5% stake through an Offer for Sale (OFS). The company itself will not receive any direct funds from the IPO.

The Securities and Exchange Board of India (SEBI) approved the IPO on September 24. Hyundai Motor, which entered the Indian market in 1996, is the country's second-largest automobile manufacturer. The company's shares are currently trading at a premium of Rs 270 in the grey market. With plans to invest Rs 32,000 crore in India, Hyundai aims to increase its annual production to 10 lakh units by 2025.

What is an IPO

When a company issues its shares to the general public for the first time, it is called Initial Public Offering (IPO). The company needs money to expand its business. In such a situation, instead of taking a loan from the market, the company raises money by selling some shares to the public or by issuing new shares. For this, the company brings an IPO.