Hyundai Motor India IPO: Parent firm to sell 14.2 crore shares; check price band

The company is likely to set the price band of the IPO in the range of ₹1,865 and ₹1,960 ($22 to $23) per share, valuing the automaker at up to $19 billion in the country's biggest stock offering this year.

This would be the largest initial public offering (IPO) in India after LIC's initial share sale of ₹21,000 crore.

This development marks a significant milestone for the Indian industry, as it is the first automaker's initial share sale in over two decades, following Japanese automaker Maruti Suzuki's listing in 2003.

The South Korean parent is diluting some of the stake through the OFS route. Since the public issue is completely an OFS, Hyundai Motor India Ltd, which is the second largest carmaker in India after Maruti Suzuki India, will not receive any proceeds from the IPO.

The automaker received approval from the Securities and Exchange Board of India (SEBI) on September 24 to float its IPO.

In February this year, reports confirmed that the South Korean automaker is planning to garner at least $3 billion through an IPO. 

Hyundai Motor India commenced operations in India in 1996 and currently sells 13 models across segments.

In September, electric two-wheeler company Ola Electric Mobility got listed on the bourses after successful completion of its ₹6,145 crore initial share sale.

The IPO launch comes at a time when the primary market is experiencing strong interest from both issuers and investors across various sectors.

The year 2024 has turned out to be a terrific year for the primary market as a host of companies launched their public issues. As per news reports, the primary market is set to witness IPOs worth over ₹50,000 crore (₹500 billion) around Diwali. 

The strong momentum in IPO markets is driven by several key macroeconomic, sector-specific factors and the willingness of funds to look at new ideas, which is partially led by strong inflows into domestic mutual funds as well as the robust capital formation happening across corporate India, experts said.