Hyundai India Set Launch Historic $3.3 Billion IPO in Mumbai Today
Hyundai India is set to open the order books for its massive $3.3 billion initial public offering (IPO) in Mumbai, starting Monday, according to regulatory filings. This offering marks the largest IPO in Indian history and ranks as the second-largest globally in 2024.
India’s capital markets continue to show remarkable momentum, with 260 companies raising over $9 billion so far this year, based on data from LSEG. The capital raised in 2024 has already exceeded last year’s total of $7.42 billion, signaling a strong investor appetite.
Unlike many other IPOs, Hyundai will not be issuing new shares. Instead, its South Korean parent company is set to offload up to 17.5% of its stake in the wholly-owned Indian unit, potentially valuing the subsidiary at around $19 billion.
This IPO will see 142,194,700 shares offered within a price range of ₹1,865 to ₹1,960 per share. If successful, it will account for about 40% of Hyundai Motor’s market value, making it the first time Hyundai has gone public outside of South Korea.
Institutional investors can begin bidding on Monday, while retail investors will have their opportunity on Tuesday and Wednesday. The stock is expected to begin trading on the Mumbai Stock Exchange on October 22.
According to analysts, Hyundai India’s IPO is well-timed as the automaker looks to ramp up its production, including potential hybrid and electric vehicle lines, in response to growing demand for environmentally friendly options in India. This move could help the automaker close the gap with Maruti Suzuki, the country’s largest car manufacturer.
Shin Yoon-chul, an analyst at Kiwoom Securities, believes Hyundai will use the funds from the IPO to further invest in expanding its operations in India, helping the company gain a stronger foothold in a market that is rapidly evolving, especially in the electric vehicle sector.
If the IPO achieves its target, Hyundai India will surpass the previous record held by Life Insurance Corporation of India, which raised $2.5 billion in 2022. Globally, this would be the second-largest IPO of the year, trailing only Lineage Inc.’s $5.1 billion IPO in the United States.
As India’s second-largest automaker, Hyundai is aiming to capture more market share from domestic competitors by expanding its SUV lineup. Additionally, it plans to debut its first electric vehicle produced in India early next year, with two gasoline-powered models slated for launch by 2026.
