The $3.3 billion initial public offering (IPO) of Hyundai Motor India Limited – the largest-ever IPO in the history of Indian stock markets and the second largest this year.
Institutional investors can bid for the stock from today (Monday). It will open for retail and other investors on Tuesday and Wednesday and begin trading on October 22.
The only IPO larger than Hyundai India this year is Lineage Inc., the world’s largest real estate investment trust for temperature-controlled warehouses, which raised $5.1 billion in August.
The largest-ever successful IPO in India is Life Insurance Corporation of India (LIC), which raised $2.5 billion in 2022.
Saudi Aramco’s $25.6 billion issue in December 2019 is the biggest IPO of all time in the world.
Hyundai’s strategic IPO move
At a valuation of $19 billion, the South Korean parent company will sell up to 17.5 per cent of its stake in the wholly-owned unit, which has the second-largest share of the Indian automobile market (14.6 per cent) after Maruti Suzuki. It is also the second-largest exporter of passenger vehicles.
A total of 142,194,700 shares are on offer with the price band set between INR1,865 ($22.18) to INR1,960 ($23.31).
Investors can bid for one lot of seven shares, followed by multiples of seven thereafter.
If successful, it will be the first time Hyundai is listed outside of its South Korean home market.
Hyundai is looking to increase its market share by expanding its SUV lineup, and also plans to launch its first India-made electric vehicle early next year.
Hyundai India is the latest in several IPOs to hit the market this year, with 260 companies raising more than $9 billion so far in 2024.
Just last month, Bajaj Housing Finance’s $782 million issue was oversubscribed 63.6 times. Total bids received were for $38.6 billion, which was slightly more than 1 per cent of India’s Gross Domestic Product (GDP) of $3.57 trillion in 2023.
A Bloomberg report said BlackRock and Singaporean sovereign wealth fund GIC Pte are among those that have already made bids. The anchor book has been fully allocated, with half of going to domestic institutions and the other half to international investors. The anchor investor portion consists of 42.4 million shares.
Non-institutional investors (NII) have a quota of 15 per cent of offered shares, while 35 per cent has been reserved for retail investors.