Hyundai’s IPO in India on track to be country’s largest ever

Hyundai’s $3.3 billion initial public offering in India starting on Monday is on track to be the country’s biggest ever, and the second-largest IPO globally this year.

The move means the South Korean automaker’s India unit will likely invest to expand local production — potentially including hybrid and electric vehicles — closing the gap with rival Maruti Suzuki in the world’s third-largest car market.

With China seeing a slump in IPOs this year, investors are turning to promising offerings in Japan and India, like Hyundai’s. India’s capital markets have boomed so far this year, with IPO proceeds already surpassing last year’s total.

“The stars are aligned in many respects,” a top Indian investment banker said, though analysts have warned about a bubble and predict the IPO craze will eventually die down.