BlackRock and GIC to Invest in Hyundai Motor India's Upcoming IPO.

BlackRock Inc., Singapore's sovereign wealth fund GIC Pte, and Capital Group are among the major investors bidding for shares in Hyundai Motor India Ltd.'s $3.3 billion initial public offering (IPO), according to sources familiar with the matter. Additional global investment firms, including Baillie Gifford and FMR, are also expected to participate in the record-breaking offering on the Mumbai stock exchange.

The IPO's anchor book, reserved for early investors, has been fully allocated, with half of the shares going to domestic institutions and the remaining portion to international investors. A total of 42.4 million shares have been set aside for anchor investors, according to the prospectus. Representatives from Hyundai, BlackRock, GIC, Capital Group, Baillie Gifford, and FMR declined to comment on the investment plans.

Hyundai Motor India’s IPO is priced between ₹1,865 ($22.21) and ₹1,960 per share. The parent company, Hyundai Motor Co., plans to sell up to 142.2 million shares, representing a 17.5% stake, valuing the Indian unit at around $19 billion at the top of the range.

This IPO is expected to surpass Life Insurance Corporation of India's $2.7 billion offering in 2022, making it the largest in Indian history and one of the most significant in Asia in recent years.

Investor interest in India's expanding economy and high valuations has fueled a surge in public offerings. In 2024, over $9 billion has been raised from more than 250 IPOs, with major listings like Swiggy Ltd. still on the horizon. Hyundai Motor India’s IPO opens for public subscription next week, with shares set to debut on October 22.

HBL