Hyundai Motors Plans $3 Billion IPO in India

In a significant development for the automotive industry, Hyundai Motors is set to launch an Initial Public Offering (IPO) in India, marking the largest stock offering in the country this year. The subscription for the IPO will open on October 14, with shares likely to be priced between ₹1,865 to ₹1,960 each, according to sources familiar with the matter. This pricing sets the potential valuation of the automaker at up to $19 billion.

This IPO is notable as it will be Hyundai’s first listing outside of South Korea and the first by a carmaker in India in two decades, following Maruti Suzuki‘s public offering in 2003. The timing coincides with notable highs in Indian stock markets, which have recently seen a flurry of new company debuts.

The $3 billion IPO will specifically target big institutional investors beginning October 14, with bids invited from retail and other investors between October 15 and 17, as confirmed by three sources who requested anonymity due to the confidential nature of the discussions. Trading of Hyundai’s shares is expected to commence on the Mumbai stock exchange on October 22.

Hyundai, the second largest automaker in India after Maruti, aims to use this opportunity to expand its market share against local competitors by enhancing its lineup of SUVs. The company also has plans to launch its first India-made electric vehicle in the early months of next year, along with the introduction of at least two new gasoline-powered models by 2026, which will be customized for the Indian market.

The IPO will not involve the issuance of new shares. Instead, Hyundai’s South Korean parent company will sell up to 17.5% of its stake in Hyundai Motor India through an “offer for sale.” Following this transaction, the parent company will retain 670 million shares, maintaining an 82.5% stake in the local unit.

Despite reaching out for comments, Hyundai has yet to respond to queries from Reuters regarding the IPO details. The market and investors await further announcements as the subscription date nears.