BlackRock, Fidelity snap up Hyundai India shares in record $3.3 billion IPO

Hyundai Motor India sold shares worth $989.4 million to institutional investors including BlackRock and Fidelity on Monday, as the carmaker launched a $3.3 billion IPO that will be the country's largest share offering yet.

The Government of Singapore and BlackRock together picked up stakes worth a total of $77.3 million, while Fidelity bought shares worth $76.5 million. Domestic mutual funds were allocated shares worth a total $340 million.

The IPO shows continued enthusiasm for India's capital markets, with 260 companies having raised more than $9 billion so far in 2024, according to LSEG data. The year-to-date volume has already surpassed the $7.42 billion total raised last year.

Hyundai will not issue new shares in the IPO, in which its South Korean parent will sell up to 17.5% of its stake in the wholly-owned unit that will be valued at up to $19 billion.

At that size, Hyundai India will make up about 40% of its parent company Hyundai Motor's market capitalization.

According to official filings, 142,194,700 shares are on offer in a price band of 1,865 to 1,960 rupees, and the deal is the first time Hyundai is listed outside of its South Korean home market.

Retail and other investors can place orders from Tuesday to Thursday following on from Monday's buying by the anchor investors — large institutions that usually buy shares at the upper end of the price band and are subject to a lock-in period when they cannot sell shares.

The stock will begin trading in Mumbai on Oct. 22.

Hyundai India's IPO is set to eclipse the country's previous record of Life Insurance Corporation of India's 2022 deal when it raised $2.5 billion.

Globally, it will be the second largest IPO this year in terms of money raised, following Lineage Inc's $5.1