Hyundai India to Launch IPO on October 22, Aiming to Raise $3 Billion

Hyundai Motor India’s Initial Public Offering (IPO) is moving closer to realization. According to documents submitted by its parent company, Hyundai Motor, 142 million shares will be sold as part of the IPO, with Hyundai still retaining a substantial 675 million shares, maintaining an 82.5% stake.

Reports indicate that the IPO will open for subscription on October 14, with pricing expected between INR 1,865 and INR 1,960 per share (approximately TWD 714 to 747). The total funds raised are estimated to be $3 billion, bringing Hyundai India’s valuation to $19 billion (around TWD 617 billion).

Sources reveal that institutional investors will have access from October 14, followed by retail investors from October 15 to 17. Hyundai India will then officially list on the Bombay Stock Exchange on October 22.

If successful, this would be the first auto manufacturer IPO since Maruti Suzuki’s listing in 2003. Hyundai will not issue new shares; instead, the parent company will sell up to 17.5% of its subsidiary’s shares through an “Offer for Sale” (OFS).

This IPO could potentially become India’s largest-ever, surpassing the $2.1 billion IPO of Life Insurance Corporation in 2022. The Indian stock market has doubled in value since 2019, significantly outpacing South Korea’s 30% growth.

By listing its subsidiary, Hyundai Motor is positioning itself for further expansion in India, the third-largest automobile market globally.

Hyundai shares closed 0.4% lower today at KRW 246,000, with a year-to-date increase of 20.88%.

Hyundai Motor India will launch its $3 billion Initial Public Offering (IPO) next week, with share prices expected to range between INR 1,865 and 1,960 (approximately $22 to $23 per share). This move will value Hyundai’s Indian subsidiary at around $19 billion.

This IPO marks Hyundai’s first public listing outside of South Korea and is notable for being the first automobile manufacturer IPO in India in 20 years, following Maruti Suzuki’s listing in 2003.

Key Points:

• Market Position: Hyundai Motor India is the second-largest car manufacturer in India, trailing behind Maruti Suzuki. The IPO is part of Hyundai’s efforts to regain market share amid increasing competition from local automakers.
• Expansion Plans: Hyundai plans to strengthen its position in India by expanding its SUV lineup and introducing its first locally produced electric vehicle (EV) by 2025. The company is also planning to launch two new gasoline-powered models by 2026 to further tap into the Indian market.
• IPO Structure: Hyundai will not issue new shares in this IPO. Instead, its parent company will sell a 17.5% stake in Hyundai India, retaining an 82.5% stake post-IPO.
• Schedule: The IPO will open for institutional investors on October 14 and for retail investors between October 15 and 17. The listing on the Bombay Stock Exchange is set for October 22.

India’s Active IPO Market in 2024:

India’s IPO market has been booming in 2024, with approximately 260 companies raising over $9 billion. Some of the major IPOs this year include Swiggy, NTPC Green, and Ola Electric, among others.

For Hyundai, this IPO represents a historic moment and an opportunity to further capitalize on India’s growing automotive and EV market. Investors see this IPO as a chance to invest not only in Hyundai but also in India’s broader economic growth.