Hyundai's $3.3 billion IPO in India opens on Oct. 15

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Hyundai's $3.3 billion IPO in India opens on Oct. 15

Published: 09 Oct. 2024, 19:30

SARAH CHEA
chea.sarah@joongang.co.kr

Hyundai Motor Group Executive Chair Euisun Chung inspects the group’s research development institute in India during his business trip to devise mid- and long-term mobility strategies in India last year. [HYUNDAI MOTOR GROUP]

Hyundai Motor India's blockbuster initial public offering (IPO) is scheduled to open for public subscription on Oct. 15, aiming to raise up to $3.3 billion to mark the nation's biggest share sale.

The price range has been set at 1,865 rupees ($22) to 1,960 rupees for the anticipated IPO, the Indian arm of the Korean automaker said Wednesday.

The company is offering a total of 142,194,700 shares, about 17.5 percent stake of its total shares, through the IPO with no fresh issue component.

Hyundai Motor's plant in Talegaon, India [YONHAP]

If the price is set at the upper end of the proposed band, around $3.27 billion worth of stocks will be sold, valuing the company at a $19 billion market capitalization.

The three-day book building for retail investors will run from Oct. 15 to 17 while institutional subscription is scheduled for Oct. 14.

It is expected to debut on the Bombay Stock Exchange on Oct. 22, though the exact date has not been disclosed yet.

The IPO marks India's largest offering, breaking the record set by Mumbai-based Life Insurance Corporation of India, which raised $2.5 billion in 2022.

It will also make Hyundai the first carmaker in India to go public in two decades, following Maruti Suzuki's offering in 2003.

Established in 1996, Hyundai Motor is India's second-largest automaker after Maruti Suzuki, with more than 600,000 cars sold in the country last year, marking an all-time high in its 27-year history.

The raised funds will likely be used to expand local production capacity and invest in EVs. Hyundai Motor and Kia plan to boost their combined capacity to 1.5 million units by next year.

Hyundai purchased a factory in Talegaon, India, from General Motors last year, which is expected to increase Hyundai’s annual production capacity in the country to one million units. The automaker already operates two plants in Chennai, Tamil Nadu, in southern India.

India is the world's third-largest auto market after China and the United States, with approximately 4.1 million vehicles sold last year.

BY SARAH CHEA [chea.sarah@joongang.co.kr]