By Scott Murdoch, Heekyong Yang, and Kashish Tandon
Hyundai Motor India raised $989.4 million from institutional investors, including BlackRock and Fidelity, as part of its $3.3 billion IPO, which is the largest in India to date.
The Government of Singapore and BlackRock invested a total of $77.3 million, while Fidelity contributed $76.5 million. Domestic mutual funds received $340 million worth of shares.
This IPO highlights the strong interest in India’s capital market, which has seen 260 companies raise over $9 billion in 2024, surpassing last year’s total.
Hyundai won’t issue new shares; its Korean parent will sell up to 17.5% of its stake, valuing Hyundai India at approximately $19 billion.
The IPO is offering 142,194,700 shares priced between 1,865 to 1,960 rupees, marking Hyundai’s first listing outside South Korea.
Retail investors can place orders from Tuesday to Thursday after anchor investors bought shares on Monday. Trading will start on October 22 in Mumbai.
This IPO will surpass the $2.5 billion raised by the Life Insurance Corporation in 2022 and will be the second largest globally this year.
Hyundai is focusing on SUVs to tap into consumer preferences for larger vehicles, which is expected to boost market share and growth.
Analysts believe the IPO is well-timed due to the Indian auto sector’s strong performance. Funds from the IPO could enhance Hyundai’s investment capacity and help it compete with industry leader Maruti Suzuki.
Hyundai plans to launch its first India-made electric vehicle early next year and introduce more gasoline models by 2026.
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