Key Points
- Hyundai Motor India will raise $3.3 billion in its initial public offering (IPO), making it the largest-ever IPO in India.
- The share price was set at 1,960 rupees, the top of the previously indicated range (1,865-1,960 rupees).
- No new shares will be issued; the IPO involves selling 17.5% of existing shares owned by Hyundai Motor Corp’s parent company.
- Anchor investors have already committed to purchase $989 million in shares at the final price.
Hyundai Motor India is set to raise $3.3 billion in its initial public offering (IPO), pricing its shares at 1,960 rupees per share, according to sources with direct knowledge of the deal. This price is at the top end of the 1,865-1,960 rupees range shared with potential investors at the IPO’s launch. With 142.2 million shares being sold, the IPO will become the largest in India’s history by the total amount raised.
The sources indicated that Hyundai India’s parent company, Hyundai Motor Corp from South Korea, will be selling about 17.5% of its wholly-owned subsidiary in the offering. The IPO will not involve issuing new shares, meaning the entire $3.3 billion will come from selling existing shares. Following the sale, Hyundai Motor India will have an estimated value of $19 billion, making up approximately 40% of Hyundai Motor Corp’s total market capitalization.
According to the company’s filings with stock exchanges, anchor investors have already committed to purchasing around $989 million in shares at the top price of 1,960 rupees. These early investments signal strong institutional confidence in the offering. Hyundai India has not yet responded to requests for comment on the upcoming IPO.
The success of this IPO would reinforce Hyundai’s position in India, one of the world’s fastest-growing automobile markets, and make Hyundai Motor India a more prominent player in the global automotive industry. The sale is also expected to contribute to Hyundai Motor Corp’s broader financial strategies, providing liquidity and enhancing its focus on new areas of automotive development, including electric vehicles (EVs).
Hyundai Motor India is one of the leading car manufacturers in the country, with a significant share of the domestic automobile market. The company has seen consistent growth over the years, bolstered by its portfolio of popular models catering to the Indian consumer’s diverse needs. With this IPO, Hyundai Motor Corp is expected to maintain control over its Indian subsidiary while bringing in new capital through the share sale.
