Hyundai India set for $3.3 billion IPO in largest-ever share sale

Hyundai India IPO : Hyundai India will start taking orders for its $3.3 billion initial public offering in Mumbai from Tuesday, the company said in regulatory filings, a deal that will be the country's largest-ever share offering and world's second-biggest IPO in 2024.

The IPO shows that India's red hot capital markets show no sign of cooling, with 260 companies having raised more than $9 billion so far in 2024, according to LSEG data. The year-to-date volume has already surpassed the $7.42 billion total raised last year.

Hyundai will not issue new shares in the IPO , in which its South Korean parent will sell up to 17.5 percent of its stake in the wholly-owned unit, which will be valued at up to $19 billion.

At that size, Hyundai India will make up about 40 per cent of its parent company Hyundai Motor's market capitalisation.

There will be 142,194,700 shares on offer in a price band of Rs 1,865 to 1,960, according to the filings, and the deal will be the first time Hyundai is listed outside of its South Korean home market.

Institutions can bid for the stock from Monday while retail and other investors can place orders on Tuesday and Wednesday. The stock will begin trading in Mumbai on Oct. 22, the regulatory filings show.

Analysts said Hyundai Motor is likely to expand its production in India, potentially including hybrids and electric vehicles. This would help the South Korean automaker strengthen its position in the Indian market as the country focuses on environmentally friendly vehicles.

"With the funds raised by the IPO , Hyundai Motor would secure a sizable investment capacity to close the market share gap with India's No.1 player Maruti Suzuki as the South Korea automaker would likely invest to expand its production in India," said Shin Yoon-chul, an analyst at Kiwoom Securities. He added that the IPO seemed timely as the auto sector has been leading the Indian stock market in terms of performance.

Hyundai India's IPO will be the largest ever in India if successful, eclipsing the previous record of Life Insurance Corporation of India's LIFI.NS 2022 deal when it raised $2.5 billion.

It will be the second largest IPO globally this year in terms of money raised, following Lineage Inc's LINE.O $5.1 billion US IPO in July.

Hyundai is India's second-largest automaker after Maruti and is looking to take market share from domestic rivals by expanding its SUV lineup.

It also plans to launch its first India-made electric vehicle early next year and introduce at least two gasoline-powered models tailored to the market starting in 2026.