Hyundai Motor brings India’s biggest-ever IPO. The company aims to raise Rs 27,870 crore (around $3.3 billion). The Issue has been subscribed 18% on Day 1, according to the data available with BSE. The bidding for the Hyundai Motor India’s initial public offering commenced from October 15, 2024, and will run until October 17, 2024.

The price band for the Hyundai Motor India IPO has been set at Rs 1,865 to Rs 1,960. The minimum investment is pegged at Rs 13,055 for a lot of 7 shares.

What Is An IPO?

IPO stands for Initial Public Offering, and this is the process in which a private company or corporation can become public and get listed on the bourses. Companies’ sell a portion of its stake to the investors in IPO. An IPO is initiated to infuse the new equity capital in the firm and to raise capital for the future or to monetize the investments made by existing stakeholders. Once the IPO is done, the shares of the firm are listed and can be traded freely in the stock market.

There are commonly 2 types of Initial Public Offerings, namely, Fixed Price Offering and Book Building Offering. Fixed Price offering is the issue price that some companies set for the initial sale of shares. Book Building offering offers a 20% price band on the stocks to the investors in the company. IPO typically translates into increased recognition for a firm. It also offers diversification opportunity, management discipline, and enhance third-party perspective in a firm. However, it also increases cost, lesser autonomy, and puts extra pressure on an entity.

How Does It Work?

In an Initial Public Offering, a private corporation engages with investment banks to introduce their shares to the public market. This necessitates extensive due diligence, marketing, and regulatory compliance for the firm.

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