Hyundai India will begin its initial public offering in Mumbai on Monday, October 14th, with plans to sell up to 17.5% of its stake in the company. The IPO, which will be the country's largest ever share offering and the second-largest in the world in 2024, highlights the strong performance of India's capital markets. This move will also mark the first time the company has been listed outside of its South Korean home market. With over 142 million shares on offer, the IPO is expected to value Hyundai India at up to US$19 billion and will make up about 40% of its parent company Hyundai Motor's market capitalisation.
Hyundai India's Historic Initial Public Offering: A Landmark Moment for Indian Capital Markets
Background
Hyundai Motor India Limited (HMIL), a subsidiary of South Korean automobile giant Hyundai Motor Company, is set to make history with its upcoming initial public offering (IPO) in India. Scheduled to begin on Monday, October 14th, 2024, the IPO marks a significant milestone for both the company and India's financial markets.
IPO Details
HMIL plans to sell up to 17.5% of its stake through the IPO. With over 142 million shares on offer, the offering is expected to value Hyundai India at up to US$19 billion. This would represent approximately 40% of its parent company Hyundai Motor's market capitalization.
Significance
The Hyundai India IPO is the largest ever share offering in India and the second-largest in the world in 2024. This underscores the growing strength and maturity of India's capital markets. It will also mark Hyundai India's first listing outside of its home market, further enhancing its global presence.
Market Performance
The announcement of the IPO has been met with positive sentiment in the market. Investors are eagerly anticipating the opportunity to participate in the growth potential of Hyundai India, which has been a dominant player in the Indian automotive industry for over two decades.
Top 5 FAQs
Q1. What is the IPO price range and lot size? A1. The price range and lot size will be announced closer to the IPO launch.
Q2. What is the objective of the IPO? A2. The IPO is intended to raise capital for Hyundai India's expansion plans, including new product development and capacity expansion.
Q3. What is the estimated market capitalization of Hyundai India after the IPO? A3. The estimated market capitalization is between US$18 billion and US$19 billion.
Q4. Has Hyundai India offered shares publicly before? A4. No, this is the first time Hyundai India has offered shares to the public outside of its private placements.
Q5. What is the expected timeline for the IPO? A5. The IPO is scheduled to open on October 14th, 2024, and close on October 18th, 2024. The allotment and listing are expected to take place in the following week.
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