New Delhi: Hyundai Motor India IPO has been filed with markets regulator SEBi and is expected to be the largest IPO in India pending the watchdog’s clearance. Hyundai Motor India’s IPO is likely to witness a 17.5 per cent stake sale from its parent company, in what will be India’s first automobile maker IPO since Maruti Suzuki India’s listing in 2003. Hyundai Motor India’s IPO size is expected to be in the range of $2.5-3 billion valuing the carmaker at $30 billion.
Hyundai Motor India has invested $5 billion in India which is considered a major market for the South Korean carmaker. The company plans to infuse another $4 billion into Indian operations over the next 10 years. India is the third-largest global revenue generator for Hyundai Motor Group. India is also the world’s 3rd largest car market.
Hyundai Motor India IPO details
While Hyundai Motor India IPO filing does not mention the IPO size, it is likely to be worth up to $3 billion, entirely comprising an offer for sale by its parent Hyundai Motor Group which is likely to offload a 17.5 per cent stake, equalling 142 million out of a total of 812 million shares, in the carmaker.
Hyundai Motor India competes directly with Maruti Suzuki India followed by Tata Motors. The IPO is expected to improve the company’s “visibility and brand image”, according to its draft prospectus. It is eyeing liquidity and access to public markets for fundraising, Hyundai Motor India added in its IPO prospectus, Reuters reported.
It did not provide a timeline for the listing, but typically India’s markets regulator, the Securities and Exchange Board of India, takes three to six months to approve, reject or seek more information on IPOs. Hyundai Motor India has the following plans for India post-IPO:
Focus on premiumisation: High-end car sales
Expanding EV portfolio and network of charging stations
More car exports from India
Hyundai Motoe India IPO advisors include:
Citi
JP Morgan
HSBC
Morgan Stanley
Kotak Mahindra Bank
Why Hyundai Motor India is going the IPO route?
Hyundai Motor India’s IPO, expected to be India’s largest till date, overtaking rival Maruti Suzuki India, is expected to unlock value for investors, while also strengthening the company’s fundraising capabilities. Hyundai Motor India IPO is likely to hit Dalal Street at a time when Indian markets are in a bullish spell. The benchmark BSE Sensex and NSE Nifty have doubled in the 4 years between 2019 and 2023, compared to a 30 per cent rise in South Korea’s benchmark Kospi index. India’s stock market overtook Hong Kong to become the world’s 4th largest stock market by valuation.
Hyundai Motor India IPO: The South Korean carmaker has filed papers for a public issue which is expected to be India’s largest till date. Here’s all you need to know about it. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
