Hyundai Motor India IPO: Price Band, Subscription Dates & Listing Details

Hyundai Motor India's highly anticipated initial public offering (IPO) is expected to be available for subscription from October 15 to October 17, with the institutional or anchor bidding scheduled for October 14. The estimated value of the IPO is approximately Rs 25,000 crore.

Hyundai Motor India IPO

Hyundai Motor India IPO Set to Open Next Week: Key Details and Expectations

Hyundai Motor India’s highly anticipated ₹25,000-crore initial public offering (IPO) is set to open for subscriptions next week. 

The price band for the IPO is expected to range between ₹1,865 and ₹1,960 per share, according to sources cited by Reuters. At the upper end of the price band, Hyundai Motor India’s valuation could reach nearly $19 billion, making it the largest public issue in the country to date.

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Hyundai Motor India IPO Subscription and Listing Dates

The Hyundai Motor India IPO will open for institutional investors on October 14, 2024, followed by retail and other investors from October 15 to October 17, 2024. 

The stock is expected to be listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on October 22, 2024.

No Fresh Shares, Parent Company to Offload 17.5% Stake

This IPO will involve no fresh issue of shares. Instead, Hyundai Motor’s South Korean parent company will be offloading up to 17.5% of its stake in its fully owned Indian subsidiary through the offer for sale (OFS) route. 

Even after the IPO, the parent company will retain a majority stake of 82.5%.

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Largest Auto Sector IPO Since Maruti Suzuki’s Listing

Hyundai Motor India’s IPO is set to become the largest in India’s auto sector since Maruti Suzuki’s IPO in 2003. 

This significant public offering comes as Indian stock markets are hitting record highs, with a surge in IPO activity across sectors. Given Hyundai’s strong market presence as the second-largest carmaker in India, the IPO is expected to draw strong interest from both institutional and retail investors.

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Hyundai Motor India's Market Dominance

In FY24, Hyundai Motor India was the second-largest carmaker in the country, trailing only Maruti Suzuki in terms of passenger vehicle sales. The company filed its draft red herring prospectus (DRHP) in June 2024 and received approvals from the Securities and Exchange Board of India (SEBI) shortly after. 

Hyundai is targeting a valuation of up to $19 billion through this IPO, reflecting its ambition to bolster its visibility in the domestic market and enhance liquidity for its shares.

A Record-Breaking IPO for India

Hyundai Motor India’s public issue is expected to surpass the previous largest IPO record held by Life Insurance Corporation (LIC), which raised ₹21,000 crore ($2.7 billion) in 2022. 

The strong market momentum and Hyundai’s dominant position in the Indian automotive industry make this IPO one of the most highly anticipated in recent history.

Hyundai Motor’s Performance in South Korea

On the Korean stock exchange, Hyundai Motor’s parent company has delivered impressive returns, with its share price surging over 34% in the last year. 

This performance far outpaced the benchmark KOSPI index, which only gained about 10% over the same period.

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Frequently Asked Questions (FAQs)

1. When is Hyundai Motor India’s IPO opening?

The IPO will open for institutional investors on October 14, 2024, followed by retail investors from October 15 to 17, 2024.

2. What is the price band for the Hyundai Motor India IPO?

The price band is set between ₹1,865 and ₹1,960 per share.

3. Will there be a fresh issue of shares?

No, there will be no fresh issue of shares. The parent company will sell up to 17.5% of its stake through the offer for sale (OFS) route.

4. How significant is Hyundai’s IPO?

Hyundai Motor India’s IPO is expected to be the largest in India’s auto sector since Maruti Suzuki’s IPO in 2003, and it could potentially surpass the size of the Life Insurance Corporation (LIC) IPO in 2022.

5. What is Hyundai Motor India’s market valuation target?

At the upper end of the price band, Hyundai Motor India is targeting a valuation of nearly $19 billion.

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