Hyundai Motor Group's Indian subsidiary is set to launch a groundbreaking initial public offering (IPO) valued at $3.3 billion, making it the largest IPO in India's history and the second-largest globally in 2024. This move underscores the vibrant nature of India's capital markets, which have seen 260 companies raising over $9 billion in 2024 alone.
The IPO will not involve new shares; instead, Hyundai's South Korean parent company is selling up to a 17.5% stake in its wholly-owned subsidiary, potentially valuing the sale at $19 billion. This valuation suggests that Hyundai's Indian operations will account for roughly 40% of the parent company's market value.
A total of 142,194,700 shares will be offered, with a price range set between 1,865 to 1,960 Indian Rupees. This marks Hyundai's first venture into an IPO outside the South Korean market. Institutional investors can begin placing orders on Monday, while retail and other investors have the following two days to submit their bids. Trading is expected to commence in Mumbai on October 22.
Prominent investors such as BlackRock from the U.S. and Singapore's Government Investment Corporation (GIC) have shown interest in acquiring shares. The cornerstone investor segment, constituting 42.4 million shares, has already been fully allocated, split equally between Indian companies and international investors.
Hyundai's IPO aims to bolster its production capabilities in India, potentially expanding into hybrid and electric vehicles to strengthen its market position. Analyst Shin Yoon-chul from Kiwoom Securities noted that the IPO funds would enable Hyundai to narrow the market share gap with India's top automaker, Maruti Suzuki (Maruti Suzuki Ltd.), by investing in production expansion.
If successful, the IPO will surpass the $2.5 billion record set by Life Insurance Corporation of India in 2022, and stand as the second-largest IPO globally this year, following Lineage's $5.1 billion IPO in the U.S. in July. Hyundai, currently the second-largest automaker in India after Maruti Suzuki, is enhancing its SUV lineup to capture more market share. It also plans to introduce its first India-manufactured electric vehicle early next year and at least two gasoline models specifically designed for the Indian market by 2026.
