Hyundai India debuts Rs 1,931/share, a discount of 1.5% over IPO price

Hyundai India debuts Rs 1,931/share, a discount of 1.5% over IPO price

Hyundai Motor India has made a significant entry into the Indian stock market with its IPO, marking the largest-ever public offering in the country, raising approximately $3.3 billion. The IPO, which was open for subscription from October 15-17, 2024, saw robust demand from institutional investors, leading to an oversubscription of nearly twice the shares available. Some of the largest institutional buyers included BlackRock and Fidelity, who acquired substantial stakes in the offering.

The IPO was entirely an offer-for-sale, meaning no new shares were issued. Hyundai’s price band was set between ₹1865 and ₹1960 per share, and its shares began trading on October 22, 2024, at ₹1934. However, initial retail investor demand was weaker than expected, with shares dipping slightly on their first trading day.

This IPO is part of Hyundai’s broader strategy to bolster its presence in India’s booming automotive market, aiming to expand production and invest further in electric vehicles and infrastructure development. India is Hyundai’s second-largest market by sales, and the company plans to use its Indian operations as a manufacturing hub for global markets

Hyundai Motor India’s IPO, the largest in India’s history, launched on October 15, 2024, and was fully subscribed by October 17. The company offered 142 million shares, representing about 17.5% of its total shares. It raised approximately ₹27,856 crore ($5.5 billion), making it the largest IPO in India, surpassing previous records

The shares were priced at ₹1,960 each, with strong demand from institutional investors such as BlackRock and Fidelity, and is set to begin trading on October 22, 2024​

DEUTSCHE WELLE

While the initial reception was lukewarm, institutional investors showed significant interest, particularly in the qualified institutional buyers (QIB) category, which was oversubscribed by over six times

Hyundai plans to use the funds to expand its manufacturing capacity in India, with a focus on electric vehicle production

Hyundai Motor India launched its highly anticipated IPO in October 2024, which became the largest IPO in India’s history, raising over $5.5 billion. The IPO involved an offer for the sale of 142 million shares, representing 17.5% of the company’s Indian arm, making it the first car manufacturer to go public in India since Maruti Suzuki in 2003. By the close of the IPO, it was oversubscribed by twice the number of shares available, driven largely by institutional investors like BlackRock and the Singapore government

The shares were priced at ₹1,960 each, giving Hyundai’s Indian subsidiary a valuation of approximately $19 billion. The company aims to use the proceeds to expand its production capacity, particularly for electric vehicles, and to strengthen its position in India’s fast-growing automobile market

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