Hyundai Motor India’s highly anticipated Rs 25,000-crore initial public offering (IPO) will likely open for subscriptions next week, with a price band set at Rs 1,865-1,960 per share, reported Reuters citing sources. At the upper end of this price range, the South Korean automaker's India unit is expected to be valued at nearly $19 billion, marking it the country’s largest public issue.
The $3 billion Hyundai Motor India IPO will open for subscriptions from institutional investors on October 14, followed by retail and other investors from October 15 to 17, said the Reuters report. Hyundai Motor India's stock is likely to get listed on stock exchanges NSE and BSE on October 22.
Hyundai Motor India's public issue will involve no fresh issue of shares, with the firm's South Korean parent offloading up to 17.5 percent of its stake in the wholly owned Indian subsidiary through an offer for sale (OFS) route. The IPO is poised to become India’s largest auto sector listing since Maruti Suzuki’s IPO in 2003, marking a significant milestone for Hyundai Motor India.
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With Indian stock markets reaching record highs in recent months and a surge in IPOs across industries, Hyundai Motor India’s offering is expected to garner strong interest from both institutional and retail investors, given the company's dominant position in the Indian auto market. Hyundai Motor India was India's second largest carmaker after Maruti Suzuki in FY24 in terms of passenger sales volumes.
Hyundai Motor India had filed its draft red herring prospectus (DRHP) in June, securing approvals from the Securities and Exchange Board of India (SEBI) soon after. The company, targeting a valuation of up to $19 billion, aims to boost its visibility and brand image with the listing in the domestic market, while also providing liquidity for its shares.
The IPO is expected to surpass previous records, including the Rs 21,000-crore ($2.7 billion) public offering by Life Insurance Corporation (LIC) in 2022. Hyundai Motor will continue to hold 82.5 percent equity stake in Hyundai Motor India post the IPO, it said.
On Korean stock exchange, parent company Hyundai Motor's share price has returned over 34 percent gains in the last one year, significantly outperforming benchmark KOSPI index, which has gained about 10 percent.
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