Hyundai Motor IPO Set to ‘Indianise’ Operations with Record ₹27,870 Cr Offering—Biggest in Indian History

Hyundai Motor India Ltd (HMIL), the Indian branch of the South Korean carmaker, is launching a record-breaking Rs 27,870 crore initial public offering (IPO). This move is aimed at further integrating the company’s operations within India. The IPO, which is the largest in India’s history, will be open for public subscription from October 15 to October 17, with anchor investors bidding on October 14.

Strengthening Local Presence and Market Share

Tarun Garg, Chief Operating Officer of HMIL, explained that Hyundai has been part of the Indian market for over 26 years and holds a significant market share, being the second-largest player in the passenger vehicle segment. “We have received so much love and support from the Indian people. This IPO is the next step in deepening our local operations and becoming even more integrated within India,” Garg said.

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India’s Economic Growth a Key Factor

Garg highlighted India’s strong economic growth, particularly its high GDP growth rate compared to global standards, as a driving factor behind the decision. “India has emerged as an ideal destination for global companies in recent years, and Hyundai’s growth story here is closely tied to India’s economic rise,” he noted.

Pune Plant and Future Investments

As part of Hyundai’s expansion plans, the company will soon bring its Pune plant, acquired from General Motors, into full operation. Garg emphasized that this is an opportune moment to invite local and global investors to be part of Hyundai’s growth in India. “This IPO will help us set higher standards in governance and operations, following global benchmarks,” he said.

Why India for the IPO?

On why Hyundai chose India for its IPO, Garg said, “Hyundai is the second-largest player in India’s passenger vehicle market outside of South Korea, and we have a double-digit market share here. The brand has been warmly received by Indian consumers, and this makes India the ideal market for an IPO.”

Setting New Records with the IPO

HMIL has set a price band of Rs 1,865 to Rs 1,960 per share, valuing the company at around Rs 1.6 lakh crore (about USD 19 billion). If fully subscribed, the IPO will raise Rs 27,870 crore, surpassing Life Insurance Corporation of India’s (LIC) Rs 21,000 crore offering in May 2022, making it the largest IPO in Indian history.