Hyundai India: Record-Breaking IPO in Mumbai

Hyundai India is planning its highly anticipated IPO in Mumbai and will begin accepting purchase orders for the $3.3 billion offering on Monday. This transaction is considered the largest in India's history and the second largest IPO globally in 2024. The IPO reflects the vitality of the Indian capital market, which shows no signs of slowing down this year, with over 260 companies collectively raising more than $9 billion. The volumes have already surpassed the total number from the previous year. As part of the IPO, Hyundai will not issue new shares, but the South Korean parent company plans to sell up to 17.5% of its shares in the wholly owned entity. Hyundai India could be valued at up to $19 billion, which is about 40% of the market capitalization of its parent company, Hyundai Motor. A total of 142,194,700 shares will be offered in a price range of 1,865 to 1,960 rupees. This also marks the first time Hyundai is going public outside of its home market, South Korea. Institutions can place bids starting Monday, while retail investors can submit their orders on Tuesday and Wednesday. Trading in the shares is scheduled to begin on October 22 in Mumbai. Analysts predict that Hyundai Motor will expand its production capacity in India, potentially including the manufacturing of hybrid and electric vehicles. This would help the South Korean carmaker strengthen its position in the Indian market, especially as the country increasingly focuses on environmentally friendly vehicles. Proceeds from the IPO could secure Hyundai Motor a significant investment capacity to close the market gap with the leading Indian manufacturer, Maruti Suzuki, according to Shin Yoon-chul, an analyst at Kiwoom Securities. He emphasized that the timing of the IPO is favorable since the automotive sector is currently leading the Indian stock markets. If the IPO is successful, it will surpass the previous record sum of $2.5 billion raised by the Life Insurance Corporation of India in 2022. On a global scale, it will be the second largest this year, following Lineage's $5.1 billion U.S. IPO in July. Hyundai, the second-largest car manufacturer in India after Maruti, intends to increase its market share by expanding its SUV lineup. Additionally, the company plans to launch its first locally manufactured electric vehicle early next year and introduce at least two gasoline-powered models by 2026.