Hyundai India IPO: Here are 10 latest Key things you need to know

Hyundai India IPO Overview: Hyundai India is set to launch its initial public offering (IPO) valued at $3.3 billion, as per a regulatory filing. The IPO will begin accepting orders on Monday in Mumbai, marking the largest IPO in India’s history and the second largest globally in 2024.

2. Significance in India’s Capital Market

The IPO underscores the strength of India’s capital market, which shows no signs of slowing down. As of 2024, 260 companies have raised over $9 billion, surpassing the $7.42 billion raised in 2023. Hyundai’s IPO is a key indicator of India’s thriving financial landscape.

3. No New Shares to Be Issued

In this offering, Hyundai will not issue new shares. Instead, its South Korean parent company will divest up to 17.5% of its shares in the wholly-owned Indian unit. This would value the Indian subsidiary at $19 billion.

4. Hyundai India’s Size Post-IPO

Post-IPO, Hyundai India will hold approximately 40% of the market share of its parent company, Hyundai Motor. This solidifies its position as a significant player not just in India but globally, reflecting the strategic importance of the Indian subsidiary.

5. Details of the IPO Offering

The IPO will involve the sale of 142,194,700 shares at a price range of 1,865 to 1,960 rupees per share. This marks the first time Hyundai is listing a company outside the South Korean market, which is a major milestone for the automaker.

6. Timeline for Institutional and Retail Investors

Institutional investors will have the opportunity to bid starting Monday, while retail investors and other participants can place orders on Tuesday and Wednesday. The shares are expected to begin trading on the Mumbai Stock Exchange on October 22.

7. Potential for Production Expansion in India

Analysts predict that Hyundai Motor will use the proceeds from the IPO to expand its production capabilities in India. The focus may shift toward hybrid and electric vehicle (EV) production, aligning with India’s growing emphasis on eco-friendly vehicles.

8. Hyundai’s Strategy to Compete with Maruti Suzuki

Hyundai aims to close the market share gap with India’s leading automaker, Maruti Suzuki. As noted by analyst Shin Yoon-chul from Kiwoom Securities, the IPO proceeds will provide Hyundai with significant investment capacity to strengthen its market position.

9. India’s Largest-Ever IPO

If successful, Hyundai India’s IPO will become the largest in Indian history, surpassing the $2.5 billion IPO of an Indian life insurance company in 2022. The scale of the offering highlights the automaker’s ambitious growth plans in India.

10. Future Models and EV Plans

Hyundai plans to launch its first electric vehicle (EV) produced in India early next year. Additionally, two gasoline-powered models are expected to enter the Indian market by 2026. These moves aim to bolster its lineup and strengthen its competitive edge in the country.