Hyundai Motor India's Rs 25,000 cr public issue likely next week, IPO price band may be set at Rs 1,865-1,960 per share: Report

At the top end of this range, the Indian unit of the South Korean automaker could be valued at nearly $19 billion, making it the largest public issue in India’s history.

The $3 billion IPO will be open for institutional investors starting on October 14, while retail and other investors can subscribe from October 15 to 17, the report said.

Hyundai Motor India’s shares are expected to be listed on the NSE and BSE on October 22, as per the report.

The public issue will not involve the release of any new shares, the report added.

Instead, Hyundai’s South Korean parent company will be selling up to 17.5 percent of its stake in the fully owned Indian subsidiary via an offer for sale (OFS).

This IPO is set to be the biggest in India’s automotive sector since Maruti Suzuki’s IPO in 2003, marking a major milestone for Hyundai Motor India.

With Indian stock markets reaching record highs and a surge of IPOs across sectors, Hyundai Motor India’s listing is expected to attract strong interest from both institutional and retail investors due to the company's prominent market position.

Hyundai was India’s second-largest carmaker, behind Maruti Suzuki, in terms of passenger vehicle sales in FY24.

Hyundai Motor India had filed its draft red herring prospectus (DRHP) in June and quickly secured approvals from the Securities and Exchange Board of India (SEBI).

With the IPO, Hyundai aims to enhance its brand visibility in India and provide liquidity for its shares, while targeting a valuation of up to $19 billion.

This IPO is expected to break past records, including the Rs 21,000-crore ($2.7 billion) listing by Life Insurance Corporation (LIC) in 2022.

Following the offering, Hyundai Motor will retain an 82.5 percent equity stake in its Indian subsidiary.

Hyundai Motor’s parent company in South Korea has seen its stock price rise by over 34 percent in the past year, significantly outperforming the KOSPI index, which has gained around 10 percent over the same period, according to reports.