Hyundai Motor India has raised $989.4 million from institutional investors, including BlackRock and Fidelity, as part of its $3.3 billion Initial Public Offering (IPO). This IPO is set to be the largest in India’s history, reflecting growing investor confidence in the country’s capital markets.
Major players like the Government of Singapore and BlackRock collectively invested $77.3 million, while Fidelity contributed $76.5 million. Domestic mutual funds acquired shares worth $340 million. This landmark IPO highlights the ongoing enthusiasm for India’s capital markets, which have seen 260 companies raise over $9 billion in 2024, already surpassing last year’s $7.42 billion total.
Hyundai will not issue new shares in this IPO. Instead, its South Korean parent company will sell up to 17.5% of its stake in Hyundai India, valuing the subsidiary at $19 billion. Hyundai India will account for approximately 40% of Hyundai Motor’s overall market capitalization.
Record-Breaking IPO in India and Beyond
The offering includes 142.19 million shares priced between 1,865 and 1,960 rupees. For the first time, Hyundai is listing outside its home market of South Korea. Retail and other investors can place orders between Tuesday and Thursday following Monday’s anchor investor placements, with the stock set to begin trading on October 22 in Mumbai.
Hyundai India’s IPO is poised to surpass the Life Insurance Corporation of India’s 2022 offering, which raised $2.5 billion, making it the largest in the country. Globally, this IPO will rank second only to Lineage Inc.’s $5.1 billion U.S. IPO earlier this year.
Catering to Consumer Preferences and Long-Term Growth
Hyundai India’s strategy focuses on expanding its SUV portfolio to meet growing consumer demand for larger, safer vehicles. Analysts at IDBI Capital highlighted that this strategy should help the company increase market share and outpace industry growth.
Anchor investors see significant long-term potential, with Hyundai India planning to expand its production capacity by 250,000 vehicles by December 2025. This, along with the anticipated market share growth, offers promising returns for investors.
Shin Yoon-chul, an analyst at Kiwoom Securities, emphasized that the timing of this IPO is advantageous, as the auto sector has been performing well in the Indian stock market. Funds from the IPO will provide Hyundai with the investment capacity to challenge market leader Maruti Suzuki and strengthen its position in India.
In addition to its SUV expansion, Hyundai Motor India, the country’s second-largest automaker, plans to launch its first India-made electric vehicle in early 2025, followed by the introduction of two gasoline-powered models tailored to the Indian market by 2026.
