Hyundai India's $3.3 Billion IPO Rolls Out: All You Need To Know

Hyundai India's $3.3 billion initial public offering (IPO), the country's largest IPO in 2024, opened for subscription on Tuesday. Hyundai Motor India Limited (HMIL) is not issuing new shares in the IPO. Instead, its South Korean parent company Hyundai Motor Group is selling up to 17.5% of its stake in the wholly-owned unit, valued at up to $19 billion. Here's all you need to know:

1. This is the first time Hyundai is listed outside of its South Korean home market.
2. Over 14 crore (142,194,700) shares are on offer in a price band of Rs 1,865 - 1,960.
3. Institutional bidding began on Monday whereas, for retailers and other investors, bidding doors opened today and will close on Thursday, 5 pm.
4. Buyers must place a minimum bid of seven shares.
5. The share allotment will happen on October 18, after which, the shares will be listed on BSE and NSE on October 22.

Hyundai Motor raised approximately Rs 8,315 crore from anchor investors on Monday, ahead of its IPO.

With this, Hyundai Motor aims to raise over $3 billion which will be used to expand production in India, including hybrids and electric vehicles (EVs). The South Korean automaker plans to launch its first made-in-India electric vehicle early next year and introduce at least two gasoline-powered models tailored to the market starting in 2026.

“With the funds raised by the IPO, Hyundai Motor would secure a sizable investment capacity to close the market share gap with India's No.1 player Maruti Suzuki as the South Korean automaker would likely invest to expand its production in India,” said Shin Yoon-chul, an analyst at Kiwoom Securities, as reported by the news agency Reuters.