Is Hyundai IPO Fresh Issue or OFS?
Hyundai Motor IPO opens for subscription on October 15, 2024, and closes on October 17, 2024. Hyundai IPO seeks to raise ₹27,870.16 crores, which is entirely an offer for sale of 14.22 crore shares.
The price band for the Hyundai Motor IPO has been set at ₹1,865 to ₹1,960 per share. The minimum lot size for applications is 7 shares, requiring a minimum investment of ₹13,720 for retail investors. For small and medium institutional investors (sNII), the minimum investment is for 15 lots (105 shares), totalling ₹2,05,800, while for bulk institutional investors (bNII), it is 73 lots (511 shares), amounting to ₹10,01,560.
What is OFS?
Offer for sale (OFS) is a method used by companies to sell their existing shares to the public, typically during an initial public offering (IPO) or subsequent offerings. In an OFS, existing shareholders, such as promoters or institutional investors, sell their shares rather than the company issuing new shares.
Difference Between Fresh Issue and OFS?
| Fresh Issue | Offer For Sales (OFS) | |
| Capital Infusion | The proceeds from a fresh issue go directly to the company, providing it with funds for growth, expansion, debt repayment, or other corporate purposes | The proceeds from an OFS go to the selling shareholders, not the company itself, meaning no new capital is raised for the business. |
| Dilution of Shares | A fresh issue results in an increase in the total number of shares outstanding, which can dilute existing shareholders’ ownership percentage | Since no new shares are issued, there is no dilution of ownership for existing shareholders |
Hyundai IPO Objective
As Hyundai IPO is entirely an offer for sale, the company will not receive any proceeds from the Offer and the selling shareholder will receive all the Offer Proceeds
Following a successful IPO, the Hyundai Motor Share Price will be closely watched during its stock market listing, shaping investor sentiment.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
Published on: Oct 15, 2024, 12:14 PM IST
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