Hyundai India Starts $3.3 Billion IPO in Country’s Largest Ever Share Sale

Wedoany.com Report-Oct 14, Hyundai India will start taking orders for its $3.3 billion initial public offering in Mumbai on Monday, the company said in regulatory filings, a deal that will be the country's largest ever share offering and world's second biggest IPO in 2024.

The IPO shows that India's red hot capital markets show no sign of cooling, with 260 companies having raised more than $9 billion so far in 2024, according to LSEG data. The year-to-date volume has already surpassed the $7.42 billion total raised last year.

At that size, Hyundai India will make up about 40 per cent of its parent company Hyundai Motor's market capitalisation.

There will be 142,194,700 shares on offer in a price band of Rs 1,865 to Rs 1,960, according to the filings, and the deal will be the first time Hyundai is listed outside of its South Korean home market.

Institutions can bid for the stock from Monday while retail and other investors can place orders on Tuesday and Wednesday.

The stock will begin trading in Mumbai on Oct. 22, the regulatory filings show.

Analysts said Hyundai Motor is likely to expand its production in India, potentially including hybrids and electric vehicles. This would help the South Korean automaker strengthen its position in the Indian market as the country focuses on environmentally friendly vehicles.

"With the funds raised by the IPO, Hyundai Motor would secure a sizable investment capacity to close the market share gap with India's No.1 player Maruti Suzuki as the South Korea automaker would likely invest to expand its production in India," said Shin Yoon-chul, an analyst at Kiwoom Securities. He added that the IPO seemed timely as the auto sector has been leading the Indian stock market in terms of performance.

Hyundai India's IPO will be the largest ever in India if successful, eclipsing the previous record of Life Insurance Corporation of India's 2022 deal when it raised $2.5 billion.