Hyundai Motor India Ltd (HMIL) is gearing up to launch the largest Initial Public Offering (IPO) in Indian history, aiming to raise Rs 27,870 crore (approximately USD 3.3 billion). This monumental IPO surpasses the previous record held by Life Insurance Corporation of India (LIC), which raised Rs 21,000 crore in May 2022. The offering positions Hyundai as a major player in the Indian market and is expected to significantly enhance its brand visibility and liquidity.
HMIL, the Indian arm of South Korean automaker Hyundai, has set a price range between Rs 1,865 and Rs 1,960 per share for the offering. This will value the company at an impressive Rs 1.6 lakh crore (USD 19 billion). The IPO, entirely an Offer-for-Sale (OFS) by Hyundai Motor Company, is set to open for public subscription from October 15 to October 17, 2024, with anchor investors bidding on October 14.
The IPO marks a historic moment in the Indian automotive industry, being the first major automaker’s share sale in over two decades, following Maruti Suzuki’s listing in 2003. However, since the issue is an OFS, HMIL will not directly receive any proceeds from the offering. Instead, the parent company, Hyundai Motor, will dilute its stake in the Indian subsidiary.
This launch comes as the primary market experiences a surge in activity, with 63 companies having collectively raised around Rs 64,000 crore in 2024, a 29% increase compared to the previous year. Hyundai’s IPO is poised to attract strong investor interest, further solidifying its position as India’s second-largest carmaker after Maruti Suzuki.
