Sources: Hyundai Motor India's IPO to be launched next week

The initial public offering (IPO) of Hyundai Motor India Ltd., the Indian subsidiary of South Korean automaker Hyundai Motor Co., will open for subscriptions next week and will likely be priced between 1,865 and 1,960 rupees ($22-$23) per share, sources cited by Reuters said.

Hyundai Motor India last week received regulatory approval to launch its initial public offering at the Securities & Exchange Board of India (SEBI). The Indian offering will be Hyundai's first listing on a stock exchange outside South Korea. At the same time, the company becomes the first car manufacturer to list in India in the last two decades, after Maruti Suzuki, which debuted in the market in 2003.

The $3 billion IPO will open for subscriptions to large institutional investors on Oct. 14, with retail and other categories expected from Oct. 15 to 17, the sources said.

Hyundai did not respond to Reuters' questions on the matter.

Hyundai is India's second-largest carmaker after Maruti and is looking to claw back market share from domestic rivals by expanding its SUV range. The company also plans to launch its first electric vehicle made in India early next year and introduce at least two petrol-tuned models to the market starting in 2026, Reuters notes.

Hyundai will not issue new shares in the IPO, which will involve its South Korean parent company. The latter is to sell up to 17.5% of its stake in the wholly owned division. The South Korean carmaker said on Tuesday that it will still hold 670 million shares in Hyundai Motor India, or an 82.5% stake, after the IPO.

According to Bloomberg, Hyundai's offer is expected to be the largest ever in India. An initial public offering of the estimated size for Hyundai Motor India would break the record set by Life Insurance Corp. of India, which has raised 206 billion rupees ($2.5 billion) in 2022. It would also be one of the largest initial public offerings in Asia in recent years.

With the funds it raises, Hyundai hopes to expand its operations in India, the third largest car market in the world. Some sources cited by Bloomberg say Hyundai Motor India's listing is likely to take place in Mumbai on October 22, and so far a mix of foreign and local institutional investors, including asset managers, insurers, pension funds and sovereign wealth funds, expressed their preliminary interest in buying shares in the IPO.