Hyundai Motor Co’s Indian subsidiary, Hyundai Motor India, is making significant strides as it prepares for its upcoming Initial Public Offering (IPO). Currently, the company is in discussions with over 100 prominent global and domestic investors, aiming to solidify support for its anchor book round. According to reports, these investor talks indicate strong confidence in the company’s prospects and underscore Hyundai Motor India’s pivotal role in the Indian automotive market.
Among the anchor investors expressing interest are renowned firms such as GIC, Capital Group’s subsidiary arms, Fidelity Group, Norges Bank Investment Management (Government Pension Fund Global), BlackRock, T Rowe Price, Baillie Gifford, along with various mutual funds including SBI MF, HDFC MF, ICICI Prudential MF, Nippon India MF, Kotak MF, and Axis MF. This diverse group of investors highlights the anticipated appeal of Hyundai’s public offering.
Despite numerous inquiries, prominent funds like T Rowe Price, Axis MF, and Baillie Gifford have chosen to refrain from commenting on their involvement in the IPO. This discretion may point to a keen interest in maintaining strategic positioning in advance of the launch.
Hyundai Motor India IPO Overview
Hyundai Motor India’s IPO is set to make waves in the Indian stock market, potentially emerging as the largest IPO in the country. If successful, it would eclipse the previous record held by the state-owned Life Insurance Corporation of India (LIC), marking a significant milestone for Hyundai and the Indian investment landscape.
According to estimates, Hyundai Motor India aims to raise an impressive $3.3 billion through its public issue. The size of this offering reflects the company’s robust market position and growth ambitions within the rapidly evolving automotive sector.
The IPO is set within a price band of โน1,865 to โน1,960 per share. The bidding process will commence next week, from October 15 to October 17, with the anchor round scheduled for Monday, October 14. This timeline is crucial as investors prepare to make informed decisions about participation in this landmark offering.
Hyundai Motor India’s Operations and Market Impact
Hyundai Motor India operates as a pivotal player in the Indian automotive market, currently offering a portfolio of 13 models that includes sedans, hatchbacks, sports utility vehicles, and eco-friendly battery electric vehicles. Additionally, the company is actively involved in manufacturing critical components, such as transmissions and engines, further reinforcing its presence in the automotive supply chain.
Hyundai has also distinguished itself as India’s largest exporter of passenger vehicles from fiscal 2005 through the first 11 months of fiscal 2024. According to a Crisil report, it has achieved the highest cumulative export figures for passenger vehicles during this timeframe. This achievement underscores Hyundai’s commitment to expanding its footprint not just in the domestic market but also on the global stage.
