On October 8, 2024, the logo of Hyundai Motor India Ltd. appeared on a parked car at the company’s stockyard in the suburbs of Ahmedabad, India.
Amit Dev | Reuters
Hyundai Motor India on Monday sold $989.4 million worth of shares to institutional investors including BlackRock and Fidelity, as the carmaker launched a $3.3 billion initial public offering in what will be the country’s biggest yet issued.
The Singapore government and BlackRock acquired a total of $77.3 million worth of shares, while Fidelity bought $76.5 million worth of shares. The value of shares allocated by domestic mutual funds totaled $340 million.
The IPO shows continued enthusiasm in India’s capital markets, with 260 companies raising more than $9 billion by 2024, according to London Stock Exchange data. The amount raised so far this year has surpassed last year’s $7.42 billion.
Hyundai Motor will not issue new shares in this IPO. The Korean parent company will sell up to 17.5% of its wholly-owned subsidiary in this IPO, with a valuation of up to US$19 billion.
At this size, Hyundai India will own about 40% of its parent company modern car market capitalization.
According to official documents, Hyundai Motor will issue 142,194,700 shares at a price range of 1,865 to 1,960 rupees, marking the first time Hyundai Motor has listed outside its home market of South Korea.
Retail and other investors can place orders from Tuesday to Thursday after anchor investors buy on Monday. restrictions.
The stock will start trading in Mumbai on October 22.
Hyundai India’s initial public offering (IPO) will break the country’s previous IPO record life insurance company of india 2022 deal to raise $2.5 billion.
Globally, this will be the second-largest IPO to raise funds this year, behind blood company It held an initial public offering in the United States in July, raising US$5.1 billion.
With its SUV-focused product portfolio, the company is looking to tap into consumer preference for larger vehicles and safety, analysts at IDBI Capital said, adding that this will help Hyundai India gain market share and stay ahead of the industry.
Analysts say anchor investors have prospects for long-term value as Hyundai Motor expands and solidifies its position in the Indian market.
“The company’s plans to expand to 250,000 vehicles by December 2025 shows that there is clearly money to be made by anchor investors in the long term. This, combined with expected market share gains, provides the company with a A runway for growth,” said founder Arun Kejriwal. Kejriwal Research.
Shin Yoon-chul, an analyst at Kiwoom Securities, said the IPO was timely as the auto industry has been a leading performer on the Indian stock market.
The analyst said the funds raised by the IPO could help the company “acquire considerable investment capacity” and close the market share gap with India’s largest market players Maruti Suzuki.
In addition to adding to its SUV range, Hyundai Motor, India’s second-largest car company, plans to launch its first Indian-made electric car early next year and at least two market-tailored gasoline-powered models starting in 2026.
