Hyundai gears up for $3 billion India IPO — will investors buy in at $22-$23 per share?

Hyundai Motor India is set to make its debut on the Indian stock market next week, with its initial public offering (IPO) priced between ₹1,865 and ₹1,960 per share ($22 to $23), according to a Reuters report that quoted insiders familiar with the matter.

The offering is expected to raise $3 billion, making it the largest public offering in India this year and valuing the automaker at nearly $19 billion.

This IPO marks Hyundai’s first stock listing outside its home market of South Korea and positions the company as the first car manufacturer to go public in India in two decades, following Maruti Suzuki’s 2003 IPO.

The offering comes at a time when Indian stock markets are hitting record highs, with numerous companies tapping into the bullish market sentiment.

Hyundai’s $3 billion IPO details and timeline

Hyundai’s $3 billion IPO will be open for institutional investors on October 14, with retail investors able to submit their bids from October 15-17, Reuters reported, citing three sources close to the matter.

The final listing is scheduled for October 22 on the Mumbai stock exchange, with the automaker expected to be valued at approximately $19 billion at the upper end of the price band.

Hyundai Motor India has not publicly commented on the IPO details yet, and the company did not respond to Reuters’ request for comment.

Hyundai’s market position and future plans

As India’s second-largest automaker after Maruti Suzuki, Hyundai Motor India is striving to regain lost market share through an aggressive product expansion strategy, particularly in the SUV segment.

The company’s plans are aimed at countering increasing competition from local automakers.

In a strategic move to tap into India’s growing electric vehicle market, Hyundai has announced plans to launch its first India-made electric vehicle early next year.

In addition, two new gasoline-powered models, specifically designed for the Indian market, are set to hit the road by 2026.

Parent company to sell stake via ‘offer for sale’ route

The IPO will not involve the issuance of new shares.

Instead, Hyundai’s South Korean parent company will sell up to 17.5% of its stake in its wholly-owned Indian subsidiary through an “offer for sale” mechanism.

This approach allows the parent company to offload shares to retail and institutional investors without diluting the company’s equity.

Post-IPO, Hyundai’s parent company will still retain a controlling 82.5% stake in Hyundai Motor India, amounting to approximately 670 million shares.

Outlook for Investors

As Hyundai prepares to list on India’s stock exchange, all eyes will be on how the market responds to the automaker’s valuation and long-term growth prospects.

With the Indian auto industry rebounding and consumer interest in electric vehicles rising, Hyundai’s positioning in the market could make this IPO an attractive proposition for investors looking to capitalize on India’s booming automotive sector.

Investors will have until October 17 to decide whether they want to jump in at the ₹1,865-₹1,960 per share price range.

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