Hyundai Motor India Set to Launch Major IPO Next Week
New Delhi/Hong Kong: Hyundai Motor India is preparing to launch its much-anticipated initial public offering (IPO), which will open for subscriptions starting October 14, 2023. The company is expected to price its shares in the range of ₹1,865 to 1,960 (approximately $22 to $23) per share. This significant IPO could position the automaker’s valuation at around $19 billion, making it the largest stock offering in India for the year.
Details of the IPO Offering
The IPO is projected to raise $3 billion and will initially open for institutional investors on October 14. Following this, retail and other categories of investors will have the opportunity to place their bids from October 15 to 17. Sources familiar with the process revealed that these timelines and pricing strategies are based on confidential discussions.
Market Impact and Trading Commencement
At the upper end of the pricing spectrum, Hyundai’s valuation could reach $19 billion, signaling strong investor interest in the company. The shares are scheduled to begin trading on the Mumbai Stock Exchange on October 22, 2023. This event marks a significant moment for the Indian automotive sector, as it will become the first car manufacturer to go public in two decades, following Maruti Suzuki’s IPO in 2003.
A Strategic Move by Hyundai
Rather than issuing new shares, Hyundai’s IPO will involve the South Korean parent company divesting up to 17.5% of its stake in the wholly owned Indian subsidiary through a mechanism known as an “offer for sale.” This strategic move reflects Hyundai’s confidence in the Indian market and its growth potential amidst a backdrop of thriving stock market conditions, characterized by recent record highs and a series of successful company debuts.
Conclusion
As Hyundai Motor India navigates this critical phase of its growth, the upcoming IPO not only highlights the company’s ambitious roadmap but also positions it as a key player in the Indian automotive landscape. Investors keen to participate in one of the largest IPOs of the year should be ready for October 14, a date that could reshape their investment strategies and contribute to the overall growth of the sector.
