Hyundai to pay 40 million dollars fee to banks advising on India IPO, 2nd biggest payday. Hyundai-India is giving ₹ 334 crore to banks for advising for IPO: Becomes the second biggest company paying the highest fees to banks, Paytm is at number one.

Hyundai Motor India, the Indian unit of South Korean company Hyundai, is preparing to launch the biggest ever initial public offering i.e. IPO in the Indian market. According to reports, the company is paying a fee of 40 million dollars i.e. Rs 334 crore to the banks giving advice for this IPO.

According to reports, this will be the second highest ever fee for advising banks working on an IPO in India. Sources said that 1.3% of the size of the IPO will be paid to the banks providing advice to Hyundai India, including JP Morgan, Citigroup and HSBC.

Hyundai India is the second biggest company paying highest fees to advising banks.
However, till now no statement has come out from Hyundai India and Advising Banks on this news. Dealogic data shows that Hyundai India will become the second largest company to pay the highest fees to advising banks for IPO.

Paytm had paid the highest fee of Rs 368 crore to 7 advising banks.
Before Hyundai India, Indian fintech firm Paytm had paid the highest fee of $ 44 million i.e. Rs 368 crore in India to 7 advising banks for IPO in 2021. In India, advising banks are given 1% or 3% of the IPO size as fees.

The fee split for Hyundai India IPO among its advising banks has not been decided yet. However, lead managers are generally paid more.

JP Morgan, Citi and HSBC lead banks for Hyundai India IPO
Sources said that JP Morgan, Citi and HSBC are the lead banks for Hyundai India IPO. He said that other investment banks in this deal include Morgan Stanley and Kotak Mahindra Bank.

Hyundai India submitted draft papers to SEBI on June 15.
Hyundai India has filed the draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on June 15 for the IPO.

Hyundai Motor India wants to raise $2.5-3 billion i.e. about Rs 25,000 crore by selling up to 17.5% of its stake through IPO. The company is selling 142 million i.e. 14.2 crore shares out of its total 812 million (81.2 crore) shares in this IPO.

The company will not issue new shares in IPO
The company will not issue new shares in this IPO. However, Hyundai India’s parent Hyundai is selling some part of its stake in the company to retail and other investors through this offer for sale (OFS). According to reports, the company’s IPO may come around Diwali i.e. in October-November.

First IPO of an automaker company in India in 20 years
This IPO will be the first initial public offering of an automaker company in India in 20 years. Earlier, Maruti Suzuki’s IPO came in 2003. Hyundai is the second largest carmaker in the country after Maruti Suzuki India.

This will be the biggest IPO in the country after LIC.
Hyundai India’s IPO will be worth around Rs 25 thousand crores. If this happens, it will be the biggest IPO ever in the country. In 2022, the government sold its 3.5% stake in LIC. For this, an IPO worth about Rs 21 thousand crores was brought.

Hyundai Motor India will be the fourth largest listed auto company
If Hyundai Motor is listed in the India stock market, it will be the fourth largest automobile company after Maruti-Suzuki, Tata Motors, Mahindra & Mahindra. Hyundai Motor India is the second largest car company in the country after Maruti.