HYUNDAI will launch a £2.52 billion initial public offering (IPO) for its India unit next week, the company announced on Wednesday. This will be the largest stock market debut in India's fast-growing economy.
The price range for the shares has been set between £17.00 and £17.86 per share, according to the company's draft prospectus.
In the IPO, Hyundai plans to sell a 17.5 per cent stake in its India operations, which would value the business at £14.48 bn if priced at the top end of the range.
Bidding for the IPO is scheduled to begin on October 15, and reports suggest the shares will be listed on October 22.
This offering will surpass the 2022 listing of Life Insurance Corporation of India, where the government raised £2.06 bn by selling a 3.5 per cent stake.
"India is one of the most exciting auto markets in the world," Unsoo Kim, managing director of Hyundai Motor India, said during a press briefing in Mumbai.
Kim added, "We believe that now is the right time for us to take a step forward to further 'Indian-ise' our operations and become a home brand."
Hyundai's parent company will decide how the proceeds from the IPO will be used. However, Kim indicated that the automaker intends to invest "aggressively" in developing new products and strengthening research and development for its India unit.
Hyundai has been in India for over two decades, gaining popularity with its small cars and sedans. In recent years, the company has experienced strong demand for its sports-utility vehicle, the Creta.
Hyundai is one of the few foreign automakers to have found lasting success in India, where others like Ford and General Motors have struggled.
The company aims to tap into India's flourishing stock market, which has seen a surge in IPO activity in recent years, with companies raising billions from domestic and foreign investors.
(With inputs from AFP)
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