Hyundai Motor India recently announced its plans to open its initial public offering (IPO) of equity shares (“Offer") on Tuesday, 15th October 2024. The Indian subsidiary of the South Korean auto giant is set to offload shares worth ₹25,000 crore through an Offer for Sale (OFS) in the Indian market. Hyundai Motor India IPO opens for subscription on 15th October and closes on 17th October.

The allotment for the Hyundai Motor IPO is expected to be finalized on 18th October. Hyundai Motor India IPO will be listed on BSE and NSE with a tentative listing date fixed as 22nd October. In a regulatory filing, the company said that this is going to be the largest-ever share offering in India and the world's second-biggest IPO in 2024.

Here are some key facts about the Hyundai Motor India IPO.

Hyundai will not issue new shares in IPO

Hyundai Motor India will not issue new shares in the IPO. Instead, its South Korean parent company will sell up to 17.5 per cent of its stake in the wholly-owned unit that will be valued at up to $19 billion. At this size, Hyundai India will make up about 40 per cent of its parent company's market capitalisation. According to the regulatory filings, there will be 142,194,700 shares on offer in a price band of ₹1,865 to ₹1,960.

Hyundai listing outside South Korea for the first time

This deal will be the first time Hyundai is being listed outside of its home country South Korea. The IPO shows that India's capital markets show no sign of cooling, with 260 companies raising more than $9 billion so far in 2024, according to LSEG data.

Largest IPO in India

The IPO of the Indian subsidiary of South Korea's Hyundai Motor Company is set to become the largest public issue in India, surpassing the Life Insurance Corporation's (LIC) IPO worth ₹21,000 crore, which was opened for bidding in May 2022. Hyundai Motor India IPO is also one of Asia’s biggest IPOs recently. Besides that, it is the world's second-biggest IPO in 2024, following Lineage Inc.'s $5.1 billion IPO in the US in July this year.

Hyundai IPO impact on the OEM's product strategy

With the funds raised by the IPO, Hyundai Motor India would secure a sizable investment capacity to close its market share difference with India's biggest car manufacturer and its closest competitor Maruti Suzuki, as the South Korean auto manufacturer would likely invest to expand its production capacity in India.

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