Hyundai Motor India Upsizes Record IPO to ₹27,800 Crore Amid Surging Demand, Set to Outshine LIC’s Historic Listing

Hyundai Motor India is set to make history with the country’s largest-ever IPO, increasing the size of its public offering to ₹27,800 crore, up from the initially planned ₹25,000 crore. This decision was made due to the strong demand for recent IPOs, according to investment banking sources. The IPO is expected to open for subscription on Tuesday, October 15, and will close on October 17.

This IPO will break the record previously held by the ₹21,008-crore public issue of Life Insurance Corporation of India in May 2022. Hyundai Motor India is expected to sell its shares in a price range of ₹1,865 to ₹1,960 each, valuing the company at around $19 billion at the upper price band. This is an increase from the earlier estimated value of $18 billion.

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The IPO will be an offer-for-sale (OFS) of up to 142.2 million shares, representing a 17.5% stake in the company, which will be sold by its South Korean parent company, Hyundai Motor Co., currently valued at $46.34 billion. Hyundai India had a 14.5% market share in the passenger car segment in FY24, compared to Maruti Suzuki’s 41.7% and Tata Motors’ 13.8%, according to data from the Society of Indian Automobile Manufacturers (SIAM).

India’s stock market has seen record-breaking activity this year. In September, the ₹6,560-crore IPO of Bajaj Housing Finance was subscribed 64 times, receiving bids worth ₹3.23 lakh crore, the highest ever in India. In 2024, 62 companies have raised a total of ₹64,510 crore through IPOs, compared to ₹49,436 crore raised by 57 companies in 2023.

Hyundai India’s IPO will be managed by Kotak Investment Banking, Citi, HSBC, JP Morgan, and Morgan Stanley.