Hyundai India IPO: Dates, Price Band Announced For India's Largest Offering So Far

Hyundai Motor India Ltd. will launch what is seen as India's largest initial public offering (IPO) on Oct. 15, 2024. The anchor portion will open for subscription on Oct. 14. A listing is likely on Oct. 22.

The three-day Hyundai India IPO is a pure offer-for-sale by South Korean parent Hyundai Motor Co. On offer are 14.2 crore shares, equivalent to 17.5% stake in the company. The price band is set between Rs 1,865-1,960, and bids can be made in lots of seven shares, according to a company statement. At that price, the Hyundai India IPO will be India's largest, valued at Rs 27,870 crore—surpassing the previous largest IPO by LIC.

India’s markets regulator, the Securities and Exchange Board of India, approved the draft red-herring prospectus last week with observations. A red herring prospectus has now been published.

Hyundai Motor Co., which entered the subcontinent with the Santro in 1998, is currently the second-largest carmaker in India with 15% market share. It remains the only foreign carmaker in a competitive market led by Maruti Suzuki India Ltd. Ford Motor Co. and General Motors Co. exited after years of operating in the Indian auto market.

A Hyundai India IPO will make the South Korean automaker the first carmaker to list in India since Maruti Udyog Ltd. in 2003. A successful listing will value Hyundai India at half of its parent company’s $47 billion market capitalisation in Seoul.

Nomura has stated that Hyundai Motor India Ltd. deserves a valuation premium over Maruti Suzuki India Ltd., taking into account the current market dynamics, particularly Maruti's declining market share.

Nearly one in four Hyundai cars is now sold in India. The company has been consistently recording sales of 60,000 units per month, except for the past few months due to the industry slowdown.