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Hyundai is India’s second-largest automaker by sales, with around 15% share of the country’s passenger vehicle market and is behind Maruti Suzuki. (Photo: Bloomberg)
Hyundai Motor India’s $3.3 billion IPO was 18% subscribed on Tuesday’s first day of bidding, led by employees who placed orders for four-fifths shares reserved for them in the country’s largest ever stock sale.
The three-day share sale, the first by an automaker in India in two decades, ends on Thursday. Ahead of the open bidding process, institutional investors including BlackRock and Fidelity acquired shares worth $989.4 million in the offering on Monday.
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The initial public offering (IPO) marks Hyundai Motor’s first such listing outside South Korea and comes at a time when companies are rushing to go public in an Indian stock market that has hit record highs .
More than 260 companies in India have raised more than $9 billion through IPOs so far this year, according to LSEG data. This is already more than the $7.42 billion collected during the same period last year.
The stock sale is the world’s second-largest IPO this year, following Lineage Inc’s $5.1 billion U.S. IPO in July.
Hyundai India employees bid for 80% of the 778,400 shares reserved for them, according to stock market data.
The company had offered a cut of Rs 186 per share to eligible employees in the IPO, which was priced between Rs 1,865 and 1,960 per share, months after hundreds of workers at the major Indian plant of the company in Sriperumbudur, near Chennai, protested demanding an allotment of shares. .
Qualified institutional buyers, including foreign investors, banks and mutual funds, subscribed for 5% of their allocated shares, while retail investors bid for 26% of their allocated shares.
Hyundai India is targeting a market valuation of $19 billion at the upper end of the IPO price range. This values the company at around 40% of its Korean parent.
Its shares are expected to begin trading on October 22.
Hyundai is India’s second-largest automaker by sales, with around 15% share of the country’s passenger vehicle market and is behind Maruti Suzuki.
However, a rapidly changing competitive landscape has seen domestic rivals Tata Motors and Mahindra & Mahindra eating into the South Korean company’s market share with new SUVs gaining popularity.
Higher production capacity would help Hyundai close the gap with Maruti Suzuki and extend its narrow lead over Tata and Mahindra.
(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First publication: October 15, 2024 | 7:13 p.m. STI