Hyundai Motor India IPO 2024: Dates, Size, Price Band

Hyundai Motor India Ltd (HMIL), the Indian arm of South Korean automaker Hyundai, is expected to bring its long-awaited initial public offering to the market in October 2024, according to people familiar with the development. Sources have indicated the IPO could be launched on October 14, with bidding dates shown as October 15 to October 17, 2024. If it proceeds as outlined, this deal would be the largest IPO in India since Life Insurance Corporation of India’s ₹21,000 crore share sale.

A key point for investors is that the issue is structured as a complete offer-for-sale (OFS). That means Hyundai Motor India will not receive any proceeds from the IPO, as the selling shareholder is its promoter, Hyundai Motor Company.

What is being offered: a pure offer-for-sale

As per the Draft Red Herring Prospectus (DRHP) filed in June, the proposed IPO is entirely an OFS of 142,194,700 equity shares by promoter Hyundai Motor Company. There is no fresh issue component in the offering.

Because the shares are being sold by the parent, the transaction is essentially a stake dilution exercise at the promoter level. Multiple reports cited in the provided material have described the fundraise expectation at around $1 billion, which has also been referenced as roughly ₹25,000 crore.

Why this IPO is being watched closely

The issue has been positioned as a landmark for India’s primary market for two reasons highlighted in the source material. First, its size would place it above recent large listings, making it the biggest since LIC’s IPO. Second, it is described as the first automaker IPO in India since Maruti Suzuki’s listing in 2003, making it a rare sector event.

Hyundai Motor India is also described as the second-largest carmaker in India after Maruti Suzuki India, which adds to the market attention around the offering.

SEBI approval and the regulatory milestone

The company received approval from the Securities and Exchange Board of India (SEBI) on September 24 to proceed with the IPO, as per the sources cited. A separate item in the supplied material also notes that SEBI approved IPO plans for both Hyundai Motor India and Swiggy, with Swiggy’s offer expected to include both fresh equity shares and an OFS.

For Hyundai, the approval clears a key procedural step, allowing the company to move towards filing final documents and opening the issue for subscription.

Expected timeline: issue launch, bidding, allotment, listing

Market timelines cited in the provided data point to an expected launch around October 14, followed by bidding from October 15 to October 17, 2024. The tentative allotment date is listed as October 18, 2024, and the tentative listing date is October 22, 2024.

If these dates hold, the timeline indicates a relatively standard gap between issue close and listing, which is typical for large mainboard IPOs.

Price band, lot size, and minimum investment

The issue information provided includes a price range of ₹1,865 to ₹1,960 per share for the regular category. It also lists an employee price band of ₹1,679 to ₹1,774. The lot size is shown as 7 shares, and the minimum investment amount is listed as ₹13,055.

The “apply as” table in the supplied material indicates the application cap up to ₹2 lakh for both Regular and Employee categories, with High Networth Individual applications shown in the ₹2 lakh to ₹5 lakh band.

Issue size and face value

The issue size is listed as ₹27,870.16 crore in the provided table. The face value is listed as ₹10.

Separately, the broader reporting in the text repeatedly references the IPO as being around ₹25,000 crore (or about $1 billion). The DRHP-based share count, however, is consistently cited as 142,194,700 equity shares being sold by the promoter.

Subscription snapshot: QIB vs retail demand

The provided subscription data shows Qualified Institutional Buyers (QIBs) at 6.94x, Non-Institutional Investors at 0.58x, Retail Individual Investors at 0.48x, and Employees at 1.69x. Total subscription is shown as 2.34x.

While the source does not specify the exact day or time of these subscription figures, the category split indicates stronger institutional demand relative to retail and NII participation in the snapshot provided.

What Hyundai said in draft papers about listing benefits

In its draft papers, Hyundai Motor India stated that it expects listing of its equity shares will enhance its visibility and brand image and provide liquidity and a public market for the shares in India. This is consistent with many large consumer-facing businesses seeking domestic market visibility and a publicly traded valuation reference.

Key IPO details at a glance

Market impact: what the OFS structure changes for investors

The pure OFS structure is central to how investors interpret the transaction. Since Hyundai Motor India will not receive funds from the issue, the IPO proceeds go to the promoter selling shareholder, Hyundai Motor Company. That distinction matters because it separates capital raising for business expansion from secondary share sales focused on stake dilution.

At the same time, the IPO would create a public market for Hyundai Motor India’s shares in India and could increase transparency through periodic disclosures required of listed companies.

Why the stake dilution range has mattered in reports

The supplied material also notes earlier indications that Hyundai was considering a stake dilution of 15% to 20% to raise between $1.3 billion and $1.6 billion. Another portion mentions selling approximately 17% and also references 17.5% in the context of shares being offered.

These figures underline that the deal has been discussed in terms of both a targeted dollar fundraise and a targeted stake sale range. However, the consistent DRHP point is the OFS size of 142,194,700 shares.

Conclusion

Hyundai Motor India’s expected October 2024 IPO is set up as a pure offer-for-sale of 142,194,700 shares by its promoter, following SEBI approval on September 24. With the price band, bidding window, and tentative listing timeline now circulating, the next formal milestones will be final offer documents and the opening of subscriptions on the stated dates.