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Hyundai Motor India Limited is poised to make history with its upcoming initial public offering (IPO), aiming to raise a record-breaking $3.3 billion. This monumental move will eclipse the previous record set by LIC's IPO in 2022. The company is offering a 17.5% stake through an offer for sale (OFS) by its parent, Hyundai Motor Co., at a targeted valuation range of $19 billion. This ambitious IPO has drawn the attention of numerous prominent investors, both domestic and international, eager to secure a piece of the action.
A multitude of sources have revealed that Hyundai has engaged in discussions with over 100 prominent public market investors for participation in its anchor book. Notable names include GIC, Capital Group arms, Fidelity Group arms, Government Pension Fund Global (Norgis Bank Investment Management), Blackrock, T Rowe Price, Baillie Gifford, SBI MF, HDFC MF, ICICI Prudential MF, Nippon India MF, Kotak MF, and Axis MF. While several investors have declined to comment publicly, the extensive list underscores the substantial interest in Hyundai's IPO.
The IPO is slated to open for retail and other investors from October 15th to 17th. Institutional investors will have the opportunity to participate in the anchor book on October 14th. The price band for the issue has been fixed at Rs 1,865-1,960 per share. Hyundai Motor India Limited, the second largest carmaker in India after Maruti Suzuki, has a strong track record in the passenger vehicle market. Its export prowess has also contributed to its success, making it India's largest exporter of passenger vehicles from 2005 to 2024. The company's growing market share and international recognition, coupled with its commitment to innovation in the electric vehicle segment, are expected to further drive investor interest in its IPO.
Hyundai Motor India's IPO represents a significant opportunity for investors to gain exposure to the growing Indian automotive market. The company's strong brand reputation, diversified product portfolio, and commitment to sustainable development are expected to position it for continued success in the years to come. While the IPO is anticipated to attract strong demand, investors should carefully consider their investment objectives and risk tolerance before making any investment decisions.
Source: Which investors may drive into anchor book of Hyundai India's $3.3-bn IPO?