Hyundai To Swiggy: The New Wave of IPOs in India:
India has positioned itself as a dominant force in the global IPO landscape, with a staggering 239 initial public offerings (IPOs) making their way onto Dalal Street within the first nine months of 2024. This remarkable surge highlights India’s status as a leading player in the IPO market, surpassing other nations and setting the stage for an exciting conclusion to the year. Among the notable upcoming IPOs, Hyundai Motor India Limited (HMIL) and the food delivery giant Swiggy are poised to make significant impacts.
What’s Next for Hyundai Motor India?
Hyundai Motor India, the Indian subsidiary of the renowned South Korean automaker, has recently gained approval from the Securities and Exchange Board of India (SEBI) for its much-anticipated IPO. This initial public offering is expected to raise approximately $3 billion (about ₹25,000 crore) and is set to achieve a valuation of $20 billion. Should this IPO go as planned, it would break records and surpass the previous largest IPO in India, which was Life Insurance Corporation of India’s (LIC) IPO of $2.7 billion in 2022.
Why Is Hyundai’s IPO So Significant?
- Market Leadership: India ranks as the third-largest market for Hyundai, trailing only the United States and South Korea. The company has invested around $5 billion in India thus far and is planning to infuse an additional $3.75 billion.
- Historic Moment: Hyundai’s IPO marks the first instance of a car manufacturer going public in India in over two decades, the last being Maruti Suzuki back in 2003.
A Closer Look at Swiggy’s IPO Plans:
Not to be overshadowed, Swiggy, the beloved food and grocery delivery platform, is gearing up for its stock market debut, with its IPO expected to launch in late October or early November. Having already secured approval from SEBI, Swiggy aims to raise around ₹5,000 crore through this offering, comprising a fresh issue of ₹3,750 crore and an offer for sale (OFS) of 18.53 crore equity shares.
What Sets Swiggy Apart?
- Revenue Growth: Swiggy’s revenue has seen a substantial boost, particularly through its quick-commerce arm, Instamart, which reported an impressive 100% growth in FY24.
- Innovative Features: In preparation for its IPO, Swiggy is rolling out exciting new features, including an XL fleet aimed at catering to large orders during the festive season and Bolt, a new 10-minute delivery service in selected locations.
What Other IPOs Should Investors Keep an Eye On?
It’s not just startups that are looking to capitalize on the booming IPO market. NTPC Green Energy, a subsidiary of the state-owned National Thermal Power Corporation (NTPC), is also on the verge of announcing its IPO. Expected to debut with a ₹10,000 crore IPO in November, NTPC Green Energy has already filed its draft red herring prospectus (DRHP) with SEBI in September.
Key Aspects of NTPC Green Energy’s IPO:
- Renewable Energy Focus: The company boasts a portfolio that includes solar and wind power assets across six states.
- Capacity Expansion: Currently, NTPC Green Energy has an installed capacity of 3.5 GW of renewable energy, with an ambitious plan to develop 28 GW and achieve a total capacity of 60 GW by 2032.
How Do These IPOs Impact the Market?
The forthcoming IPOs from Hyundai and Swiggy, along with other significant players like NTPC Green Energy, reflect a vibrant and evolving landscape for Indian investments. These companies are not merely raising capital; they’re also signaling the resilience and growth potential of India’s economy, particularly in sectors like automotive and renewable energy.
Conclusion: A New Era for India’s IPO Market:
As we navigate through the final months of 2024, the excitement surrounding IPOs from giants like Hyundai and Swiggy is palpable. These offerings not only promise to reshape the market dynamics but also signify a broader trend toward increased investment opportunities in India. Investors, stakeholders, and market enthusiasts should stay vigilant as these IPOs unfold, presenting unique opportunities for participation in the Indian economy’s growth story.
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