Hold onto your steering wheels, folks! Hyundai Motor India is set to make a grand entrance onto the stock exchange stage, with an IPO aiming to be the biggest the country has ever seen. Buckle up as we explore the details of this high-octane offering.

IPO Details: Size and Scale

Mark your calendars! Hyundai will be the first car manufacturer to IPO in India since Maruti Suzuki in 2003. This breaks a two-decade-long hiatus for the auto industry in terms of public offerings.

While the official figures are yet to be announced, sources suggest Hyundai is targeting a mammoth $2.5-$3 billion offering. This could value the company at a staggering $30 billion. Let’s put this in perspective: Hyundai is aiming to surpass the previous record set by Life Insurance Corporation of India’s $2.5 billion issue in 2022.

What’s on Offer?

It’s important to note that this won’t be an issuance of new shares. Instead, Hyundai’s South Korean parent company will be selling a portion of its existing stake in the Indian subsidiary. This is known as an “offer for sale” (OFS). Up to 17.5% of the total shares could be up for grabs by retail investors and other institutions.

Unlocking Value and Chasing Growth

This IPO is a strategic move for Hyundai. It allows them to unlock the value of their thriving Indian business. The Indian auto market is a major player globally, and Hyundai is a dominant force within it. The IPO proceeds can further fuel Hyundai’s ambitious plans, including:

• Launching new electric vehicles (EVs) to cater to the growing demand for sustainable transportation.
• Setting up charging stations across the country to create a robust EV infrastructure.
• Establishing a battery pack assembly unit to strengthen their EV ecosystem.

A Bullish Market for Hyundai?

Analysts believe this IPO could be a win-win. Here’s why:

• Strong Market Performance: Benchmark Indian stock indices have witnessed a significant rise in recent years, making it an attractive market for Hyundai.
• Closing the Valuation Gap: Compared to its global and Asian peers, Hyundai is currently undervalued. This IPO might help bridge that gap.

What to Watch Out For

While the IPO is much anticipated, some key details are yet to be revealed. Keep an eye out for:

• Final Offer Size and Valuation: The exact amount of stake being offered and the final valuation will be crucial factors to watch.
• Price Band: Once the price band is announced, potential investors can delve deeper into the financials and make informed decisions.
• Subscription Details: The subscription process and investor response will be key indicators of the IPO’s success.

This IPO is a significant development for India’s auto industry. It signifies the growing investor confidence in the sector, especially with the focus on EVs. Hyundai’s move paves the way for other automakers to potentially consider similar public offerings in the future.