Hyundai Motors India IPO to Launch on October 14: India’s Largest-Ever IPO

Hyundai Motor India Ltd. is set to make history with its upcoming Initial Public Offering (IPO), scheduled to open for subscription on October 14, 2024. The IPO is expected to be India’s largest-ever, surpassing the record set by Life Insurance Corporation (LIC) of India, which raised $2.45 billion earlier. Hyundai Motor India’s public offer could reach an estimated ₹25,000 crore (approximately $3 billion), positioning it as a landmark event in the country’s capital markets.

IPO Structure and Details

The IPO will consist entirely of an offer for sale (OFS), where Hyundai Motor Company, the promoter and selling shareholder, will offer 142.19 million equity shares with a face value of ₹10 each. This sale will represent 17.50% of Hyundai Motor India’s total equity share capital. While the price band for the issue is yet to be announced, it is expected to be disclosed by mid-October, shortly before the IPO opens for subscription.

The capital markets regulator, SEBI, has already cleared Hyundai Motor India’s IPO papers, marking a significant step forward for this highly anticipated public offer.

Largest IPO in India’s History

If successful, Hyundai Motor India’s IPO will surpass the previous record set by LIC, making it the largest IPO ever in India. Neha Agarwal, Managing Director and Head of Equity Capital Markets at JM Financial Institutional Securities noted in an interview that Hyundai’s offering is expected to generate substantial interest from both domestic and foreign institutional investors (FIIs). She emphasized the strong demand in Indian capital markets for new listings, initial public offerings, and qualified institutional placements (QIPs), and believes Hyundai’s IPO will be no exception.

What the IPO Means for Investors

Hyundai Motor India’s IPO offers a rare opportunity for investors to be part of one of the country's leading automobile manufacturers. With Hyundai’s prominence in the Indian market and strong investor demand for new equity, this public offering is expected to perform well.

Additionally, the Indian capital market has been witnessing robust activity in 2024, with companies raising billions of dollars through various IPOs. Hyundai’s IPO comes at a time when investor sentiment is particularly strong, making it likely to attract attention from major institutional players.

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The Hyundai Motor India IPO promises to be one of the most exciting financial events of 2024. With the potential to break records, this offering will be closely watched by investors both in India and abroad. As Hyundai prepares to launch the country’s largest-ever IPO, the company’s entry into the stock market could have a lasting impact on India’s financial landscape.