News

Published: October 8, 2024
Updated: October 8, 2024

Hyundai Motor India to Launch India’s Biggest IPO Worth Rs 27,856 Crore

South Korean auto giant Hyundai Motor Company (HMC) is set to make history with the largest initial public offering (IPO) in India. Hyundai Motor India Limited (HMIL), its domestic arm, is poised to raise Rs 27,856 crore through the sale of shares, marking a significant milestone for the country’s equity market. At the top end of the price band, between Rs 1,865 and Rs 1,960 per share, the firm will be valued at Rs 1.59 trillion.

IPO Timing and Investor Interest

The public offering will open on October 15 and remain available for subscription until October 17. Prior to this, Rs 8,315 crore worth of shares have been allocated for anchor investors, with allotments set for October 14. Market insiders suggest overwhelming demand, with interest already exceeding the available shares by three times. Prominent global investors like Abu Dhabi Investment Authority, Amundi, Singapore’s GIC, Fidelity, and BlackRock are among those likely to participate, along with major domestic mutual fund players such as SBI MF, HDFC MF, and ICICI Prudential MF.

Hyundai’s Market Position and Future Plans

Currently, HMIL is a 100% subsidiary of HMC. Following the IPO, HMC’s stake will reduce to 82.5%. HMIL, recognized for its popular SUV models like the Creta, holds a 14.6% market share in India’s competitive passenger vehicle sector. With this listing, Hyundai aims to enhance its presence and operations in India, tapping into the country's growing automotive market, particularly in the electric vehicle (EV) space. Proceeds from the IPO will be channeled into expanding research and development (R&D) and launching new car models, including the Creta EV and the hybrid Ni1i SUV.

India's Burgeoning Equity Market

This IPO not only underscores the growing stature of India’s domestic equity markets but also signals a rising trend of multinational corporations looking to list in the country. HMIL’s valuation is on par with industry leaders like Maruti Suzuki India Ltd. (MSIL) and Mahindra & Mahindra (M&M), further highlighting the company's competitive edge. Analysts are optimistic, pointing to Hyundai’s strong product portfolio and growing market share as key factors driving investor confidence. As HMIL gears up for its landmark IPO, it is expected to inject fresh energy into India’s capital markets, contributing to what is already a record-breaking year for IPOs. With continued demand for EVs and hybrid vehicles, Hyundai Motor India is well-positioned to capitalize on future growth in the sector.