Wed Oct 09 01:06:11 UTC 2024: ## Hyundai India Set to Launch Record-Breaking IPO, Aiming for Rs 27,870 Crore Valuation

**MUMBAI, INDIA -** Hyundai Motor India Ltd. is poised to launch what is expected to be India’s largest initial public offering (IPO) on October 15th, 2024, with the anchor portion opening for subscription a day earlier. The listing is anticipated on October 22nd.

The three-day IPO will see South Korean parent company Hyundai Motor Co. offloading 14.2 crore shares, representing a 17.5% stake in Hyundai India. Sources cited by Bloomberg have reported a price band of Rs 1,865-1,960 per share, although the official red herring prospectus has not confirmed this. If this price range holds true, the IPO could raise a staggering Rs 27,870 crore, surpassing the previous record set by LIC.

Hyundai Motor Co. entered the Indian market in 1998 with the Santro model and has since become the second-largest carmaker in the country, holding a 15% market share. The company remains the only foreign carmaker in a competitive market dominated by Maruti Suzuki India Ltd., after the exit of Ford Motor Co. and General Motors Co.

A successful listing would make Hyundai India the first carmaker to go public in India since Maruti Udyog Ltd. in 2003. Furthermore, the IPO could value Hyundai India at half the market capitalization of its parent company, which currently sits at $47 billion.

Nomura has argued that Hyundai Motor India Ltd. deserves a valuation premium over Maruti Suzuki India Ltd. due to the current market dynamics, particularly Maruti’s declining market share. Notably, nearly one in four Hyundai cars sold globally are now sold in India. The company has consistently maintained sales of 60,000 units per month, except for recent months impacted by a general industry slowdown.

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