- Hyundai's IPO in 2024 will be the largest in India and second largest globally.
Hyundai Motor India recently announced plans to open its initial public offering (IPO) of equity shares (“Offer”) on Tuesday, October 15, 2024. South Korean auto giant's Indian subsidiary set to sell shares Rs 25,000 crore through Offer for Sale (OFS) in the Indian market. Hyundai Motor India's IPO will open for subscription on October 15 and close on October 17.
The allotment for Hyundai Motor IPO is expected to be finalized on October 18. Hyundai Motor India IPO will be listed on BSE and NSE, with the tentative listing date set for October 22. In a regulatory filing, the company said it is going to be the largest-ever share offering in India and the world's second-largest IPO in 2024.
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Here are some key facts about Hyundai Motor India IPO.
Hyundai will not issue new shares in IPO
Hyundai Motor India will not issue new shares in the IPO. Instead, its South Korean parent company will sell its 17.5 percent stake in the wholly owned unit, valuing it at up to $19 billion. At this size, Hyundai India will account for about 40 percent of its parent company's market capitalization. According to the regulatory filing, 142,194,700 shares will be on offer in the price band. from 1,865 1,960.
Hyundai listed outside South Korea for the first time
The deal will mark the first time Hyundai is being listed outside its home country South Korea. IPOs show India's capital markets show no signs of cooling off, with 260 companies raising more than $9 billion so far in 2024, according to LSEG data.
Biggest IPO in India
The IPO of the Indian subsidiary of South Korea's Hyundai Motor Company is going to become the largest public offering in India, surpassing the IPO of Life Insurance Corporation (LIC). 21,000 crore, which was opened for bidding in May 2022. Hyundai Motor India IPO is also one of the largest IPOs in Asia recently. Moreover, it is the world's second largest IPO in 2024 after Lineage Inc's $5.1 billion IPO in the US in July this year.
Impact of Hyundai IPO on OEM's product strategy
With the funds raised by the IPO, Hyundai Motor India will secure a larger investment capacity to narrow its market share gap with India's largest carmaker and its nearest rival Maruti Suzuki, as the South Korean auto maker is likely to ramp up its production. Will invest to expand capacity. India.
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First publication date: 14 October 2024, 07:36 am IST