India’s Largest Stock Offering of 2024: Hyundai Motor India to Launch $3 Billion IPO

Hyundai Motor India is set to launch its initial public offering (IPO) next week, with share prices expected to be priced between Rs 1,865 and Rs 1,960 ($22 to $23). This valuation could position the automaker at approximately $19 billion, marking it as the largest stock offering in the country this year.

This IPO represents Hyundai’s first foray into public markets outside of South Korea and is significant for India, as it will be the first car manufacturer to go public since Maruti Suzuki in 2003. The announcement comes on the heels of Indian stock markets hitting record highs and numerous companies making their market debuts.

Sources with direct knowledge of the matter indicated that the IPO will open for subscriptions from institutional investors on October 14, with retail and other categories invited to place bids from October 15 to 17. At the upper price limit, the company would be valued at around $19 billion, with trading expected to commence in Mumbai on October 22.

Hyundai has not yet commented on the inquiries from Reuters.

As the second-largest automaker in India, trailing only Maruti Suzuki, Hyundai aims to regain market share from local competitors by enhancing its SUV lineup. The company also plans to introduce its first India-made electric vehicle early next year, alongside two gasoline-powered models designed specifically for the market, slated for launch in 2026.

In this IPO, Hyundai will not issue new shares; instead, it will utilize an “offer for sale” method, allowing its South Korean parent company to sell up to 17.5% of its stake in the wholly owned subsidiary. Following the IPO, Hyundai’s parent will retain 670 million shares, equating to an 82.5% ownership in Hyundai Motor India.