Hyundai India has announced that it will start taking orders for its initial public offering (IPO) of $3.3 billion in Mumbai. This will be the largest share sale in India’s history and the second-largest IPO in the world for 2024.
Unlike some IPOs, Hyundai will not create new shares. Instead, its parent company in South Korea will sell up to 17.5% of its stake in Hyundai India, which will be valued at around $19 billion. This means that Hyundai India will account for about 40% of the overall market value of Hyundai Motor.
The IPO will offer 142,194,700 shares at a price range of ₹1,865 to ₹1,960. This is the first time Hyundai is listing shares outside South Korea. Institutional investors can start bidding for shares on Monday, while retail investors can place their orders on Tuesday and Wednesday. The stock is set to begin trading on October 22.
Analysts believe that Hyundai Motor may use the funds from the IPO to boost production in India, especially focusing on hybrids and electric vehicles. This move is seen as a way to strengthen Hyundai’s presence in the Indian market, which is increasingly prioritizing eco-friendly vehicles.
According to Shin Yoon-chul, an analyst at Kiwoom Securities, the funds raised will help Hyundai compete better against Maruti Suzuki, India’s leading automaker. He noted that the timing of the IPO is great, as the auto sector is currently performing well in the stock market.
If successful, Hyundai India’s IPO will break the previous record held by the Life Insurance Corporation of India, which raised $2.5 billion in 2022. It will also be the second-largest IPO globally this year, following Lineage Inc’s $5.1 billion IPO in July.
Hyundai, which is currently India’s second-largest automaker after Maruti, plans to expand its SUV lineup and will launch its first electric vehicle made in India early next year. Additionally, it aims to introduce at least two gasoline-powered models designed for the Indian market by 2026.
