Hyundai Motor India IPO a success for its parent. What about local shareholders?
Subscribe to enjoy similar stories. Stock of Hyundai Motor India Ltd, only the second pure-play passenger vehicle maker to be listed on the Indian stock exchanges after Maruti Suzuki India Ltd, debuted on the National Stock Exchange (NSE) at ₹1,934 on Tuesday, a slight discount to its issue price ₹1,960. The issue—a milestone for both the company’s parent Hyundai Motor Co.
(HMC) and the Indian stock market as the country’s largest public offering so far—is a key part of Hyundai’s strategy to enhance the valuation of its global businesses as part of the South Korean government’s Corporate Value-Up Program. The programme seeks to improve operational efficiencies in large conglomerates like Hyundai, while enhancing corporate value and returning more cash to shareholders. By the end of the day, the stock had fallen nearly 5% from its listing price.
Despite the lukewarm opening, Hyundai’s initial public offering (IPO) is seen as a pivotal moment for the Indian stock market, showcasing the market’s depth and liquidity. Also read | Hyundai IPO: QIBs rescue India's biggest-ever offer Hyundai’s IPO of ₹27,870 crore was the biggest in the country, exceeding state-run Life Insurance Corp. of India’s (LIC) initial share sale of ₹21,000 crore in 2022.
It had fixed a price band of ₹1,865-1,960 per share. The offering consisted of 142.19 million equity shares, with Hyundai Motor Co., the promoter, selling a portion of its stake in the Indian subsidiary. In March this year, Hyundai Motor India paid a special dividend of ₹107.82 billion to Hyundai Motor Co.
following strong earnings. This amounted to a dividend of ₹13,270 per equity share. Over the past three years, dividends have increased steadily, from ₹1,838 per share in FY22 to
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