Hyundai’s $3 Billion IPO Set for October: India’s Largest Ever

According to person’s familiar with the IPO situation, Hyundai Motor India Ltd.'s $3 billion IPO is expected to open for subscription on October 14 and its price range will be revealed by the middle of next week. This is the largest share sale of its kind in the nation.

According to the persons, who asked to remain anonymous, Hyundai IPO is considering a three-day subscription period that would run from October 14 to October 16. Barring an unexpected shift in market mood brought on by the intensifying turmoil in the Middle East, the dates are essentially set in stone.

The deteriorating circumstances in the Middle East alarmed investors on October 3, causing the major indexes, the Sensex and the Nifty, to close more than 2% lower—their worst one-day decline in the past two months.

The Securities and Exchange Board of India gave the South Korean automaker Hyundai Motor's Indian division the go light to proceed with the massive offering on September 24, as reported first by Moneycontrol.

Also read our previous article on Hyundai India Prepares IPO DRHP Filing, Targets $2.5-3 Billion from 17.5% Stake Sale

The $2.7 billion share sale by state-run Life Insurance Corp. of India in 2022 established a record, which would be surpassed by India Inc.'s largest ever initial public offering (IPO), which is a pure offer for sale by the promoter. The car giant's Indian division submitted a draft red herring prospectus to the market regulator on June 15th, with the aim of valuing the company between $18 billion and $20 billion.

To Summarize

Hyundai Motor India Ltd.'s $3 billion IPO is set to open for subscription from October 14 to 16, with the price range to be announced next week. This will be India's largest-ever IPO, surpassing the $2.7 billion Life Insurance Corporation's 2022 offering. The Securities and Exchange Board of India approved the offering on September 24, and it is expected to proceed unless market conditions change due to Middle East unrest. The company aims for a valuation between $18 billion and $20 billion, with the IPO being a pure offer for sale by the promoter.