Hyundai Motor India's IPO Announcement

By Aditya Kalra and Scott Murdoch

NEW DELHI/HONG KONG (Reuters) – Hyundai Motor India's IPO will open next week for subscriptions, likely priced between 1,865 to 1,960 rupees ($22 to $23) per share, potentially valuing the automaker at up to $19 billion in the country's largest stock offering this year.

This will be Hyundai's first stock market listing outside South Korea, making it the first carmaker to go public in India in two decades since Maruti Suzuki in 2003. The announcement comes after Indian stock markets hitting record highs, with many companies making debuts.

The $3 billion IPO opens for subscriptions for institutional investors on Oct. 14, followed by bids from retail and other categories from Oct. 15-17. Sources indicate that trading will commence in Mumbai on Oct. 22.

Hyundai is India's second largest automaker and aims to reclaim market share by expanding its SUV lineup. The company plans to launch its first India-made electric vehicle early next year and introduce at least two gasoline-powered models starting in 2026.

The IPO will involve Hyundai's South Korean parent selling up to 17.5% of its stake in the wholly-owned unit through an “offer for sale” route. After the IPO, Hyundai will retain 670 million shares, or an 82.5% stake in Hyundai Motor India.

Hyundai did not immediately respond to Reuters' queries.