Why are Hyundai’s promoters launching the largest IPO in Indian history?
The primary reason is to take home more than $3 billion. This is a 100% offer-for-sale issue, meaning no funds are being raised for business expansion or working capital. The promoters are merely reducing their stake.
They plan to raise nearly $1 billion from anchor investors, who will have a lock-in period of 30 days for 50% of their holdings and 90 days for the remaining 50%.
That’s one aspect of the story.
The second part is that the IPO is priced at a reasonable P/E ratio of 26, which is moderate and not overly expensive.
Given this scenario, where the IPO comes at a fair valuation but is purely an offer-for-sale with no funds allocated for growth, there’s a good chance that anchor investors might exit once their lock-in period ends.
These are just key points to consider, not a recommendation to apply or skip the IPO.
I personally will wait for its listing and see couple of quarterly results. Wont be bate of FOMO.
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