SYDNEY/SEOUL: Hyundai India will begin taking orders for its $3.3 billion initial public offering in Mumbai on Monday, the company said in a regulatory filing, making the deal the country’s biggest ever share issuance and the world’s second-largest IPO in 2024.
The IPOs show India’s hot capital markets show no sign of cooling off, with 260 companies raising more than $9 billion so far in 2024, according to LSEG data. Year-to-date volume has already surpassed the $7.42 billion total raised last year.
Hyundai will not issue new shares in the IPO, in which its South Korean parent will sell up to 17.5% of its stake in a wholly-owned entity, valuing it at up to $19 billion.
At that size, Hyundai India will make up about 40% of its parent Hyundai Motor’s market capitalisation.
As per the filing, 142,194,700 shares will be on offer in the price band of Rs 1,865 to Rs 1,960, and the deal will mark the first time Hyundai will be listed outside 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. Regulatory filings show the stock will begin trading in Mumbai on October 22.
Analysts said Hyundai Motor could expand its production in India, potentially including hybrid and electric vehicles. This would help the South Korean automaker strengthen its position in the Indian market as the country focuses on eco-friendly vehicles.
“With the funds raised by the IPO, Hyundai Motor will gain a huge investment potential to bridge the market share gap with India’s No. 1 company Maruti Suzuki, as the South Korean automaker can invest to expand its production in India,” said Shin Eun-chul, an analyst at Kiwoom Securities. He added that the IPO looks timely as the auto sector has been leading the Indian stock market in terms of performance.
If successful, Hyundai India’s IPO will be the biggest ever in India, surpassing the previous record of Life Insurance Corporation of India’s 2022 deal when it raised $2.5 billion.
It will also be the second-largest IPO globally this year in terms of funds raised, after Lineage Inc’s $5.1 billion US IPO in July.
Hyundai is India’s second-largest automaker after Maruti and is looking to gain market share from domestic rivals by expanding its SUV lineup.
It also plans to launch its first India-made electric vehicle early next year and introduce at least two gasoline-powered models for the market from 2026.
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