By Scott Murdoch, Heekyong Yang, and Kashish Tandon
Hyundai Motor India raised $989.4 million by selling shares to investors like BlackRock and Fidelity, as part of a $3.3 billion IPO, the largest in India.
The Government of Singapore and BlackRock invested $77.3 million, while Fidelity contributed $76.5 million. Indian mutual funds received $340 million in shares.
This IPO reflects strong interest in India’s markets, with 260 companies raising over $9 billion in 2024, surpassing last year’s $7.42 billion.
Hyundai will not issue new shares; instead, its South Korean parent will sell up to 17.5% of its stake, valuing the unit at around $19 billion.
Hyundai India’s valuation will account for about 40% of its parent company’s market cap. The IPO offers 142,194,700 shares priced between 1,865 and 1,960 rupees.
Retail investors can buy shares from Tuesday to Thursday. Trading starts on October 22, making this the largest IPO, surpassing LIC’s $2.5 billion offering in 2022.
This IPO will be the second-largest globally this year after Lineage Inc’s $5.1 billion IPO.
Hyundai aims to grow its SUV line in response to consumer preferences, which may enhance its market share in India. The company’s plan for a 250,000 vehicle expansion by December 2025 suggests strong long-term growth potential.
Analysts believe this IPO is well-timed, as the auto sector is performing well on the Indian stock market. Funds from the IPO could help Hyundai increase its market share and close the gap with leading competitor Maruti Suzuki.
Hyundai plans to launch its first India-made electric vehicle next year and two gasoline models by 2026.
(Reporting by Scott Murdoch, Heekyong Yang; Editing by Jane Merriman and Barbara Lewis)
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