Hyundai India is set to start taking orders with respect to its USD 3.3 billion Initial Public Offering in Mumbai on Monday. The company said this in regulatory filings, wherein, this deal is bound to be the country's largest ever share offering and the second biggest in the global front this 2024.
As per the LSEG data, there is no sign of cooling in the Indian capital markets frenzy with 260 companies having raised more than USD 9 billion so far in 2024. Furthermore, the year-to-date volume has already surpassed the valuation of USD 7.42 billion in total raised last year.
It is expected that Hyundai will not issue new shares in the IPO while 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 USD 19 billion. With this, Hyundai India is set to make up about 40 percent of its parent company Hyundai Motor's market capitalisation.
According to the filings, there will be 142,194,700 shares on offer at a price ratio of INR 1,865 to INR 1,960. Also, the deal will be the first time Hyundai is set to be listed outside of its South Korean home market. It is said that institutions won’t be able to bid for the stock from Monday while retail and other investors start placing orders from Tuesday and Wednesday. Furthermore, the stock will begin trading in Mumbai on Oct. 22 as per regulatory filings show.
Potentially including hybrids and electric vehicles, analysts said Hyundai Motor is likely to expand its production in India. This is said to aid the South Korean automaker strengthen its position in the Indian market as the country focuses on environmentally friendly vehicles.
Shin Yoon-chul, an analyst at Kiwoom Securities said, "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."
He further added that the Initial Public Offering seemed timely as the automobile sector has been spearheading the Indian stock market in terms of performance.
Also to note, Hyundai India's IPO will be the biggest ever in India if it is successful and will beat the previous 2022 record of Life Insurance Corporation of India's deal when it had raised USD 2.5 billion. Hyundai is also planning to launch its first Made in India electric vehicle in the early half next year and also introduce at least two gasoline-powered models which would be customized to the market starting in 2026.
