Hyundai Motor India’s $3.3 billion IPO was 18% subscribed on its first day, with employees buying 80% of their reserved shares. This IPO, the largest share sale in India, runs for three days and ends Thursday. Institutional investors, including BlackRock and Fidelity, bought $989.4 million in shares before the open bidding.
This marks Hyundai’s first IPO outside South Korea and arrives as many companies are going public in India’s booming stock market. So far this year, over 260 companies have raised over $9 billion through IPOs, exceeding last year’s $7.42 billion for the same period.
Hyundai’s IPO is the second-largest globally this year, after Lineage Inc’s $5.1 billion offering in July. Employees received a discount of 186 rupees per share, priced between 1,865-1,960 rupees, amid previous protests for share allocation. Qualified institutional buyers subscribed to 5% of shares, while retail investors took 26%.
Hyundai aims for a $19 billion market valuation at the highest IPO price, representing about 40% of its Korean parent company’s value. Trading is set to start on Oct. 22. Hyundai holds a 15% share of India’s passenger vehicle market, making it the second-largest carmaker after Maruti Suzuki. The company faces stiff competition from Tata Motors and Mahindra & Mahindra, which are gaining market share with new SUVs.
(1 USD = 84.06 INR)
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