Gurugram

In the upcoming initial public offering (IPO), Hyundai Motor India plans to price its shares at INR 1,960 a piece and collect about USD 3.3 billion, two sources aware of the matter said. This goes above the previously indicated range of INR 1,865 to INR 1,960 for prices. It will be the largest IPO globally in terms of fund raised, with Hyundai India selling 142.2 million shares. Hyundai India has not commented on the developments, and the sources declined to be identified because the information was confidential.

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Hyundai India is not issuing an IPO of new shares. Instead it will sell around 17.5 per cent of its wholly owned subsidiary, Hyundai India, for an estimated USD 19 billion. Hyundai India, which is expected to comprise about 40% of Hyundai Motor’s overall market capitalisation following this share sale, is now a success story.

They've also already attracted anchor investors lining up to commit nearly USD 989 million for shares priced at ₹1,960, according to company exchange filings. It is this demand from anchor investors for Hyundai India's stock till it goes public that shows the kind of interest the company has.

The IPO is a step in Hyundai Motor's bigger India play to expand its footprint in this key market for global automotive integrators. Hyundai India's market potential in the face of challenges in the auto industry, from changing consumer preferences and increasing competition, has led to investor confidence in the company successfully pricing shares at the top of the range.

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With its launch of this massive IPO looming, the automobile market is keenly watching as a preparation for both Hyundai’s future and the overall Indian stock market.