India's largest and the world's second largest IPO this year: Hyundai India launches its initial public offering (IPO) with a target valuation of $19 billion

Hyundai Motor Group's Indian subsidiary has officially launched its first initial public offering (IPO) plan, aiming to raise $3.3 billion, setting a record for the largest IPO in Indian history. The IPO was launched on Monday in Mumbai, the financial center of India, and is expected to be the second largest IPO globally in 2024.

According to regulatory documents, Hyundai India's IPO will not issue new shares, but will involve the sale of up to 17.5% of its stake in its Indian wholly-owned subsidiary by the South Korean parent company, with the subsidiary being valued at up to $19 billion. At this valuation, Hyundai India's market value will account for approximately 40% of the total market value of the parent company, Hyundai Motor.

The IPO plans to issue 142 million shares at a price range of 1865 to 1960 Indian Rupees per share. This will be Hyundai Motor's first listing outside of the South Korean domestic market. Institutional investors can start applying for shares from Monday, while retail investors and other investors can make purchases on Tuesday and Wednesday. The shares are scheduled to be officially listed on the Mumbai Stock Exchange on October 22.

The Second Largest IPO Globally

Hyundai India's IPO also reflects the booming Indian capital market. According to data from the London Stock Exchange Group (LSEG), as of 2024, 260 companies have raised over $9 billion through IPOs, surpassing the total of $7.42 billion for the entire year of 2023.

If Hyundai India's IPO is successful, it will be the largest IPO in Indian history, surpassing the record of $2.5 billion raised by Life Insurance Corporation of India in 2022. Globally, Hyundai's IPO this year will be the second largest, only behind Lineage Inc, a US company that raised $5.1 billion in July.

Expanding Market Presence in India through IPO

Analysts believe that Hyundai Motor may expand its production scale in India, potentially including the production of hybrid and electric vehicles. This will help Hyundai strengthen its position in the Indian market, as India is increasingly focusing on environmentally friendly vehicles.

Shin Yoon-chul, an analyst at Kiwoom Securities, said that with the funds raised through this IPO, Hyundai Motor will receive significant investment to expand production in India, helping to narrow the market share gap with Maruti Suzuki, the largest player in the Indian market. He also mentioned that the timing of the IPO is good as the performance of the automotive industry has consistently outperformed the Indian stock market.

Hyundai Motor is the second largest car manufacturer in India, after Maruti, and plans to expand its SUV models to gain more market share. Hyundai plans to launch its first India-made electric vehicle early next year and intends to introduce at least two gasoline models tailored for the Indian market starting in 2026