Hyundai India will start taking orders for its $3.3 billion preliminary public providing (IPO) in Mumbai on Monday, the corporate mentioned in regulatory filings, a deal that may mark the nation’s largest-ever share providing and the world’s second-biggest IPO in 2024.
The IPO exhibits that India’s red-hot capital markets present no signal of cooling, with 260 corporations having raised greater than $9 billion up to now in 2024, based on LSEG knowledge. The year-to-date quantity has already surpassed the $7.42 billion whole raised final yr.
Hyundai won’t situation new shares within the IPO, during which its South Korean guardian will promote as much as 17.5% of its stake within the wholly-owned unit, which will likely be valued at as much as $19 billion.
At that measurement, Hyundai India will account for about 40% of its guardian firm, Hyundai Motor’s market capitalization.
There will likely be 142,194,700 shares on supply in a value band of 1,865 to 1,960 rupees, based on the filings, and the deal would be the first time Hyundai is listed outdoors of its South Korean residence market.
Institutions can bid for the inventory from Monday, whereas retail and different buyers can place orders on Tuesday and Wednesday. The inventory will start buying and selling in Mumbai on Oct. 22, the regulatory filings present.
Analysts mentioned Hyundai Motor will probably broaden its manufacturing in India, probably together with hybrids and electrical automobiles. This would assist the South Korean automaker strengthen its place within the Indian market because the nation focuses on environmentally pleasant automobiles.
“With the funds raised by the IPO, Hyundai Motor would secure a sizable investment capacity to close the market share gap with India’s No.1 player, Maruti Suzuki, as the South Korean automaker would likely invest in expanding its production in India,” mentioned Shin Yoon-Chul, an analyst at Kiwoom Securities. He added that the IPO appeared well timed because the auto sector has been main the Indian inventory market by way of efficiency.
Hyundai India’s IPO would be the largest ever in India if profitable, eclipsing the earlier file of Life Insurance Corporation of India’s 2022 deal when it raised $2.5 billion.
It would be the second largest IPO globally this yr by way of cash raised, following Lineage Inc.’s $5.1 billion U.S. IPO in July.
Hyundai is India’s second-largest automaker after Maruti and is seeking to take market share from home rivals by increasing its SUV lineup.
It additionally plans to launch its first India-made electrical automobile early subsequent yr and introduce at the least two gasoline-powered fashions tailor-made to the market beginning in 2026.
Source: www.dailysabah.com