Hyundai Motor Group's Indian subsidiary has stated in regulatory filings that it will begin accepting orders for its $3.3 billion initial public offering (IPO) in Mumbai starting Monday. This will be the largest stock issuance in India's history and the second-largest global IPO of 2024.
The IPO indicates that India's red-hot capital market shows no signs of cooling down. According to data from LSEG, so far in 2024, 260 companies in India have raised over $9 billion. The financing scale to date has already surpassed last year's $7.42 billion.
Hyundai Motor will not issue new shares in the IPO; instead, its South Korean parent company will sell up to 17.5% of its stake in the wholly-owned subsidiary, valued at up to $19 billion.
At this scale, Hyundai Motor India is expected to account for approximately 40% of its parent company Hyundai Motor's market value.
Advertisement
According to the documents, 142,194,700 shares will be listed with a price range of 1865 to 1960 Indian Rupees. This transaction will mark Hyundai Motor's first listing outside of its home market in South Korea.
Institutional investors can start purchasing the stock on Monday, while retail and other investors can place orders on Tuesday and Wednesday. Regulatory filings show that the stock will begin trading in Mumbai on October 22.
According to insiders, U.S. investment firm BlackRock and Singapore's sovereign wealth fund GIC have participated in the bidding for shares. Sources say that in this largest-ever IPO in Indian history, the cornerstone investor portion has been fully allocated, with local Indian businesses and international investors each accounting for half. The cornerstone investor portion, as disclosed in the prospectus, totals 42.4 million shares.
Largest-ever IPO in Indian history
Analysts suggest that Hyundai Motor may expand production in India, possibly including hybrid and electric vehicles. In India, which is centered around eco-friendly cars, this will help Hyundai Motor strengthen its position in the Indian market.
Kiwoom Securities analyst Shin Yoon-chul stated: "With the capital raised through the IPO, Hyundai Motor will gain considerable investment capacity to close the gap with India's largest car manufacturer, Maruti Suzuki Ltd., as the South Korean automaker may invest in expanding its production in India." He added that the IPO seems timely, as the automotive sector's performance has consistently outperformed the overall Indian stock market.If successful, Hyundai Motor India's IPO will surpass the record of Life Insurance Corporation of India, which raised $2.5 billion in 2022, to become the largest IPO in India's history.
In terms of fundraising, this would be the second-largest global IPO this year, just behind Lineage's $5.1 billion IPO in the United States in July.
Hyundai Motor is now the second-largest car manufacturer in India after Maruti Suzuki, and the company is seeking to capture market share from domestic competitors by expanding its SUV lineup.
The company also plans to launch its first India-made electric vehicle early next year and introduce at least two gasoline-powered models tailored for the Indian market starting in 2026.