Swiggy, backed by SoftBank and Prosus, was concerned to avoid a tepid response to its relatively large IPO, coming amid global uncertainty. File.
| Photo Credit: Reuters

Food delivery giant Swiggy has slashed its IPO valuation again, to $11.3 billion, 25% below the initial goal of $15 billion as market volatility and the lacklustre debut of Hyundai India weigh on sentiment, two sources said on Sunday (October 27, 2024).

BlackRock and Canada Pension Plan Investment Board (CPPIB) will invest in the $1.4 billion IPO, which will be the country’s second-biggest stock offering this year, the sources told Reuters.

Swiggy, Blackrock and CPPIB did not immediately respond to requests for comment outside business hours.

Indian shares have fallen for four weeks in a row, the longest such losing run since August 2023, with the benchmark Nifty 50 index down more than 8% from record highs hit on Sept. 27, due to persistent foreign selling.

Hyundai India shares fell 7.2% on their debut last week after retail investors gave a lukewarm reception amid concerns about a lofty valuation.

Swiggy, backed by SoftBank and Prosus, was concerned to avoid a tepid response to its relatively large IPO, coming amid global uncertainty from the Nov. 5 U.S. presidential election, and decided to cut the valuation in consultation with investors, said one source, with direct knowledge of the company’s plans.

Swiggy does not want a “bad IPO”, this person said. Its last funding round, led by Invesco, valued it at $10.7 billion in 2022.

It competes with Zomato in India’s online restaurant and cafe food deliveries sector, and both have made major bets on a boom in “quick-commerce,” where groceries and other products are delivered in 10 minutes.

Despite recent jitters, India’s IPO market has been buoyant, with around 270 companies raising $12.57 billion so far this year, well above the $7.4 billion raised in all of 2023.

Shares of newly-listed Hyundai Motor India Limited, the Indian arm of South Korean automaker Hyundai, jumped 6% on Wednesday (October 23, 2024), a day after making the market debut.

The stock climbed 5.91% to ₹1,928.15 from the previous close on the BSE. At the NSE, the stock surged 6% to ₹1,928.90. Shares of Hyundai Motor India Limited on Tuesday (October 22, 2024) made a muted market debut and ended more than 7% lower against the issue price of ₹1,960.

Hyundai Motor India debuts at BSE at a discount of 1.48%, falls nearly 6% post listing

The Initial Public Offer (IPO) of Hyundai Motor India Limited got subscribed 2.37 times on the last day of the bidding, helped by institutional buyers. This was the biggest IPO in the country, surpassing LIC’s initial share sale of ₹21,000 crore. The ₹27,870 crore initial share sale had a price band of ₹1,865-1,960 per share.

This was the first initial share sale by an automaker in over two decades, following Japanese carmaker Maruti Suzuki’s listing in 2003. The IPO was entirely an Offer For Sale (OFS) of 14,21,94,700 equity shares by promoter Hyundai Motor Company (HMC), with no fresh issue component. HMIL commenced operations in India in 1996 and currently sells 13 models across segments.

This is the largest IPO in the country, surpassing LIC’s initial share sale of ₹21,000 crore.
| Photo Credit: Reuters

The Initial Public Offering (IPO) of Hyundai Motor India Limited, the Indian arm of South Korean automaker Hyundai, got fully subscribed on the third day of the bidding on Thursday (October 17, 2024).

The ₹27,870 crore initial share sale got bids for 14,07,68,187 shares against 9,97,69,810 shares on offer, translating into 1.41 times the subscription, as per NSE data till 13:21 hours.

The quota for Qualified Institutional Buyers (QIBs) got 3.88 times subscription while the portion meant for Retail Individual Investors (RIIs) received 44% subscription. The non-institutional investors part fetched 39% subscription. Hyundai Motor India Limited (HMIL) on Monday raised ₹8,315 crore from anchor investors.

This is the largest IPO in the country, surpassing LIC’s initial share sale of ₹21,000 crore. The IPO has a price band of ₹1,865-1,960 per share. The IPO is entirely an offer for sale (OFS) of 14,21,94,700 equity shares by promoter Hyundai Motor Company (HMC), with no fresh issue component.

This is the first initial share sale by an automaker in over two decades, following Japanese carmaker Maruti Suzuki’s listing in 2003. Since the public issue is completely an OFS, Hyundai Motor India Limited, the second largest carmaker in India after Maruti Suzuki, will not receive any proceeds from the IPO.

HMIL stated that it expects that the listing of the equity shares will enhance its visibility and brand image and provide liquidity and a public market for the shares.

At the upper end of the price band, the IPO size has been pegged at ₹27,870 crore ($3.3 billion) and the company’s market valuation at around ₹1.6 lakh crore (about $19 billion) post-issue.

HMIL commenced operations in India in 1996 and currently, sells 13 models across segments. Kotak Mahindra Capital Company Limted, Citigroup Global Markets India Private Ltd, HSBC Securities and Capital Markets (India) Private Limited, J.P. Morgan India Private Limited and Morgan Stanley India Company Private Limited are the book-running lead managers to the offer.

Image for representational purposes only.
| Photo Credit: REUTERS

South Korean automaker’s Indian arm Hyundai Motor India Ltd will launch the largest initial public offering (IPO) in the country’s history next week, aiming to raise ₹27,870 crore (about $3.3 billion).

This IPO will surpass the ₹21,000 crore offering by Life Insurance Corporation of India (LIC) in May 2022.

Apart from these two, the biggest initial share-sales in India include One97 Communications (Paytm), which mobilised ₹18,300 crore in November 2021, followed by Coal India’s ₹15,199 crore in October 2010, Reliance Power’s ₹11,563 crore in January 2008, and General Insurance Corporation of India’s ₹11,176 crore in October 2017.

Hyundai Motor India Ltd (HMIL) has set a price band of ₹1,865 to ₹1,960 per share for the offering, valuing the automaker at ₹1.6 lakh crore (about $19 billion).

The offering will open for public subscription on October 15 and conclude on October 17. Anchor investors will bid on October 14.

With this massive IPO, Hyundai Motor India seeks to build on its growing market presence and capitalise on strong demand for its vehicles in the country. The offering is expected to draw significant investor interest.

The company’s proposed IPO is entirely an Offer-for-Sale (OFS) of 142,194,700 equity shares by promoter Hyundai Motor Company, with no fresh issue component.

This development marks a significant milestone for the Indian industry, as it is the first initial share sale of an automaker in over two decades, following Japanese carmaker Maruti Suzuki’s listing in 2003.

The South Korean parent is diluting some of the stake through the OFS route. Since the public issue is completely an OFS, Hyundai Motor India Ltd, the second largest carmaker in India after Maruti Suzuki India, will not receive any proceeds from the IPO.

HMIL expects that the listing of the equity shares will enhance its visibility and brand image and provide liquidity and a public market for the shares.

At the upper end of the price band, the IPO size has been pegged at Rs 27,870 crore HMIL commenced operations in India in 1996 and is selling 13 models across segments.

The IPO launch comes at a time when the primary market is experiencing strong interest from both issuers and investors across various sectors.

Moreover, 63 companies have already mobilised around ₹64,000 crore collectively via mainboard, marking a 29% increase from ₹49,436 crore collected by 57 firms through the route in the entire 2023.

New Delhi:

Hyundai Motor India Limited, the Indian arm of the South Korean auto giant, today filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an IPO to raise around $3 billion (Rs 25,000 crore).

“The objects of the offer are to carry out the Offer for Sale of up to 142,194,700 (over 142 million) Equity Shares of the face value of Rs 10 each by the Promoter Selling Shareholder and to achieve the benefits of listing the Equity Shares on the Stock Exchanges,” according to the DRHP.

Further, “our Company expects that listing of the Equity Shares will enhance our visibility and brand image and provide liquidity and a public market for the Equity Shares in India,” Hyundai Motor India’s DRHP added.

If the listing gets the nod from the regulator, it will be the country’s biggest IPO (a pure offer for sale by the promoter) after the state-owned Life Insurance Corporation of India’s (LIC) $2.7 billion listing in 2022.

The automaker has roped in global investment banks such as Kotak Mahindra, Citibank, Morgan Stanley, JP Morgan and HSBC for its entry into the public market.

In May, Hyundai Motor India clocked seven per cent year-on-year (YoY) growth in total sales at 63,551 units.

In FY24, Hyundai Motor India was the country’s second-largest carmaker after Maruti Suzuki (in terms of passenger sales volumes).

The company established its first Indian manufacturing plant in 1998 and a second one in 2008.

Over the past year, Hyundai Motor Group has announced new investment plans in India totalling approximately five trillion won ($3.75 billion).
 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Representational image of the Hyundai logo.
| Photo Credit: AP

South Korea’s Hyundai Motor is exploring an initial public offering (IPO) for its Indian unit to raise at least $3 billion, two sources familiar with the matter said on Monday.

Hyundai Motor India is also in early stage talks for an IPO later this year that could value the company at $25 billion-$30 billion, the sources said.

While Hyundai’s plan for an IPO later this year is not finalised, it could potentially be the country’s biggest stock market offering, the sources said.

The company is exploring “value unlocking for its India business” through the IPO, the two sources said.

A spokesperson at Hyundai’s India unit declined to comment.

Hyundai, India’s second-largest carmaker by sales, has said it plans to invest $2.45 billion in the country for its electrification push with plans to launch new EVs, charging stations and a battery pack assembly unit.

The carmaker, which entered India more than 20 years ago, has 15% share of the Indian car market and competes with Maruti Suzuki and local rival Tata Motors.