Hyundai Motor India has made history with its $3.3 billion initial public offering (IPO), which was oversubscribed on its final day of bidding. This IPO, the largest ever in India and the second-largest globally in 2024, marks Hyundai's first listing outside South Korea. The offering attracted significant interest from institutional investors, including foreign entities and domestic banks, who bid for more than six times the shares reserved for them. However, retail investors showed caution, subscribing to only 45% of their allocated shares due to concerns over valuation.

The IPO, which opened for bidding on October 15, saw a gradual increase in interest over its three-day period. By the second day, the subscription had reached 42%, with employees of Hyundai India leading the charge by oversubscribing their portion of the offer. The shares are set to debut on the stock market on October 22, with a price band set between ₹1,865 and ₹1,960 per share, aiming for a market valuation of $19 billion.

Hyundai's decision to launch this IPO in India is strategic, given the country's booming automotive market, which is now the third-largest in the world. The funds raised are expected to help Hyundai expand its market share and production capacity in India, where it already holds a 15% share of the passenger vehicle market, trailing only Maruti Suzuki.

Despite the overall success, the IPO's valuation has been a point of contention. Analysts have noted that the pricing is close to that of market leader Maruti Suzuki, which has a significantly larger market share. This has led to some skepticism among retail investors about potential gains from the listing.

The IPO is entirely an offer-for-sale, with Hyundai Motor Company, the South Korean parent, selling a 17.5% stake in its Indian unit. The proceeds from the sale will go to the parent company, which plans to use the funds for various strategic initiatives, including potential buybacks of its shares listed in Seoul.

Hyundai's move comes at a time when the Indian stock market is experiencing a surge, with over 260 companies raising more than $9 billion through IPOs this year. This trend underscores the growing investor interest in India's economic potential, particularly in the automotive sector, which is witnessing a shift towards electric vehicles and increased production capabilities.