Hyundai Motor India Ltd (HMIL) is preparing to launch the largest Initial Public Offering (IPO) in Indian history, seeking to raise Rs 27,870 crore (approximately USD 3.3 billion). This monumental IPO will surpass even the highly anticipated offering from Life Insurance Corporation (LIC) in 2022. Scheduled for public subscription between October 15 and 17, the offering will be an Offer-for-Sale (OFS) by Hyundai Motor Company, with no fresh issue involved. This IPO reflects Hyundai’s strategic move to strengthen its presence in the Indian market amidst growing demand for its vehicles. Key details on price, investor interest, and the market context underscore the significance of this historic event.

Hyundai Motor India Ltd to Launch Historic IPO

The largest IPO in Indian history is set to unfold next week, as Hyundai Motor India Ltd (HMIL) aims to raise Rs 27,870 crore, roughly USD 3.3 billion. This offering surpasses the Life Insurance Corporation of India's (LIC) 2022 IPO, previously India's largest, which raised Rs 21,000 crore. The magnitude of Hyundai’s IPO reflects both the automaker’s growing market footprint and India’s robust demand for automotive products.

Surpassing Previous IPO Giants

Hyundai Motor India’s IPO eclipses historic share-sales, including One97 Communications (Paytm), which raised Rs 18,300 crore in November 2021, and Coal India's Rs 15,199 crore in 2010. Other notable offerings, such as Reliance Power’s Rs 11,563 crore in 2008 and General Insurance Corporation of India's Rs 11,176 crore in 2017, were substantial but now fall behind Hyundai’s massive share-sale in terms of scale.

IPO Pricing and Market Valuation

Hyundai Motor India sets a competitive price band for the IPO, ranging from Rs 1,865 to Rs 1,960 per share. This valuation positions the automaker at a market cap of Rs 1.6 lakh crore, or USD 19 billion. The IPO will open to the public from October 15 to 17, with anchor investor bidding commencing on October 14. Such pricing indicates significant potential for value creation for both institutional and retail investors.

An Offer-for-Sale Structure

The IPO is entirely structured as an Offer-for-Sale (OFS), with 142,194,700 equity shares being sold by the parent company, Hyundai Motor Company. Unlike many IPOs, no fresh shares will be issued. Therefore, Hyundai Motor India Ltd will not receive any direct proceeds from the offering. The South Korean automaker seeks to dilute its ownership stake while continuing its operations in India, maintaining its position as the second-largest carmaker in the country after Maruti Suzuki.

First Automaker IPO in Two Decades

This IPO marks the first automaker’s listing in India since 2003, when Japanese carmaker Maruti Suzuki went public. Hyundai’s move highlights its long-term commitment to the Indian market, where it has been operating since 1996. With 13 models across various segments, HMIL is well-positioned to capitalize on its growth trajectory.

Capitalizing on a Robust Market

The timing of Hyundai’s IPO is strategic, as India’s primary market is experiencing strong interest from both issuers and investors across multiple sectors. Hyundai Motor India’s successful IPO is expected to further cement its brand image, enhance visibility, and provide liquidity in the public market. The company is seeking to build on its growing momentum, propelled by increasing demand for its vehicles and a favorable market environment.
This landmark event underscores Hyundai’s forward-thinking approach as it navigates an increasingly competitive and opportunity-laden automotive landscape in India.