India’s largest initial public offering (IPO) by Hyundai Motor India Ltd (HMIL) will reportedly open for subscription next week at a price of ₹1,865-1,960 per share.
The anchor book for IPO will open on October 14 and the bids from retail and other investors will be open the following day till October 17, Reuters said on Tuesday.
At the upper end of the price band, the country’s second largest automaker will be valued at $19 billion.
According to the draft red herring prospectus (DRHP) filed in June, the IPO will entirely be an offer for sale (OFS) of 14.21 crore shares by promoter Hyundai Motor Company, with no fresh issue component. Hyundai will raise over ₹27,870 crore at the upper end of the price band.
This will be the largest IPO in India after LIC’s initial share sale of ₹21,000 crore in 2022. HMIL will also be the first carmaker to go public after Maruti Suzuki (earlier Maruti Udyog) in 2003.
As per IPO Watch, Hyundai’s IPO is now commanding a grey market premium (GMP) of ₹270 per share.
The offer comes at a time the secondary markets have come under selling pressure and retreated from record highs because of tensions in West Asia.
The IPO market has also seen a slowdown, with just two issues this week. There were 12 IPOs in the mainboard segment and 40 in the SME (small and medium enterprise) segment in September.
Both Garuda Construction and Shiv Texchem entered the markets on Tuesday. Garuda is seeking to raise ₹264 crore and Shiv Texchem plans to mobilise ₹101 crore.
HMIL received approval from the Securities and Exchange Board of India on September 24 for the IPO.
In its draft papers, the company said it expected the listing of the equity shares “will enhance our visibility and brand image and provide liquidity and a public market for the shares”.
HMIL said in its draft red herring prospectus it is taking various initiatives which involve an aggregate investment commitment of ₹32,000 crore.
It currently serves as a production and export hub for emerging markets for Hyundai Motor Company, particularly passenger vehicle models such as Verna and Venue.
The company has a plant in Chennai with annual capacity of 824,000 units and is expanding in Maharashtra with the acquisition of a facility at Talegaon, which is expected to commence operations in the second half of 2025-26.
HMIL disclosed it is taking steps to develop an electric vehicle (EV) supply chain and manufacturing capabilities by developing a platform and localising parts.
HMIL said its domestic dispatch to dealers saw a 6 per cent dip to 51,101 units last month from 54,241 units in the year-ago period.
