Hyundai goes public in India with the country’s biggest IPO

Hyundai Motor India Limited (HMIL), a wholly-owned subsidiary of the Hyundai Motor Company, launched the country’s biggest initial public offering. The company listed its shares on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

HMIL set the price band for its IPO from 1,865 to 1,960 Indian rupees (20.52-21.56 euros) and accepted bids from 15 to 17 October. Despite the ongoing IPO boom in India and Hyundai Motor India’s strong brand image, investors showed a lukewarm response to the launch. Local reports said the company overvalued its shares, leading to a bleeding start on the listing day.

HMIL’s shares opened at 1,934 Indian rupees (21.28 euros) on the NSE and 1,931 Indian rupees (21.24 euros) on the Bombay Stock Exchange, marginally below the upper limit of the price band. As a promoter of Hyundai Motor India, the main Hyundai brand sold 142 million (14,21,94,700 to be precise) shares and gave up 17.5% of its stake through an offer for sale. The Times of India reported that the company raised 27,870.16 crore Indian rupees (approximately 3.07 billion euros) with the IPO launch.

HMIL’s share tanked to an intraday low of 1,807 Indian rupees (19.88 euros) on the National Stock Exchange and 1,807.05 Indian rupees (19.88 euros) on the Bombay Stock Exchange, down 7.8% from the maximum issue price on both exchanges. It closed the first day at 1,845 Indian rupees (20.30 euros) on the NSE and 1,820.40 Indian rupees (20.03 euros) in Bombay.

The Economic Times stated in a report that HMC will utilise the proceeds for R&D and new innovative offerings. In its media announcement about its IPO launch, HMIL stated it plans to localise battery systems, battery cells, and drive systems and invest in establishing EV infrastructure in the country.

Euisun Chung, the Executive Chairperson of Hyundai Motor Group, Hyundai Motor Company’s parent company, attended the HMIL’s IPO launch, underscoring the event’s significance. Making the most of his visit to India, he also met Prime Minister Narendra Modi and discussed the future of mobility with him. Chung invited Modi to inaugurate HMIL’s upcoming factory in Talegaon, a town near Pune in the western state of Maharashtra. The company acquired this plant from GM in January and is currently upgrading it, with plans to commence manufacturing in 2025.

HMC established HMIL in 1996, and the local subsidiary launched the Hyundai Santro (Hyundai Atos Prime) city car as its inaugural product in 1998. Over the years, the South Korean brand has elevated its status to an entry-premium marque and successfully expanded into higher car segments. India’s second-largest automobile manufacturer has sold almost 12 million passenger vehicles, including exports, for 26 years. The company plans to launch a raft of locally manufactured electric cars, beginning with the Hyundai Creta EV in January 2025.

hyundai.com, hyundai.com (Narendra Modi), economictimes.com, timesofindia.com