Hyundai Motor India IPO. Automaker To Launch $3-Bn IPO Next Week, Check The Price Band: Report

Hyundai Motor India IPO: The offering is poised to value the automaker at up to $19 billion, making it the largest stock market listing in India this year

Hyundai Motor India IPO: Hyundai Motor India is set to launch its highly anticipated Initial Public Offering (IPO) next week, with subscription opening for investors. The shares are expected to be priced in the range of Rs 1,865 to Rs 1,960 ($22 to $23) per share, sources told Reuters on Tuesday. The offering is poised to value the automaker at up to $19 billion, making it the largest stock market listing in India this year.

This IPO marks Hyundai's first listing outside of South Korea and will be the first public offering by an automaker in India in two decades, following Maruti Suzuki's 2003 debut. The announcement comes at a time when Indian stock markets are riding high, with several companies making their market debuts recently.

According to sources familiar with the matter, the $3-billion IPO will open to institutional investors on October 14, while retail and other categories can place their bids between October 15 and October 17. These sources, who declined to be named due to confidentiality, also confirmed that Hyundai's shares are expected to begin trading on the Mumbai stock exchange on October 22.

At the upper price limit of Rs 1,960, Hyundai's Indian operations will be valued at approximately $19 billion. Hyundai has yet to comment on the matter, as inquiries by Reuters went unanswered.

As India's second-largest automaker, trailing only Maruti Suzuki, Hyundai is keen to regain market share by focusing on expanding its SUV offerings. The company also plans to launch its first electric vehicle made in India early next year and is preparing to introduce at least two new gasoline-powered models, designed specifically for the Indian market, starting in 2026.

Hyundai Motor India will not be issuing new shares in this IPO. Instead, the parent company in South Korea will divest up to 17.5 per cent of its stake in the Indian unit through an "offer for sale." After the IPO, Hyundai’s parent company will retain an 82.5 per cent stake in the Indian subsidiary, amounting to 670 million shares.

The listing is expected to further bolster Hyundai's presence in India, offering investors a chance to buy into one of the country's leading automobile manufacturers.