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Hyundai Motor India Ltd., the Indian subsidiary of South Korean automaker Hyundai Motor Co., has received regulatory approval to launch its initial public offering (IPO) at the Securities & Exchange Board of India (SEBI), reports teslarati.com.
Hyundai's offer is expected to be the largest ever in India. According to estimates, the IPO will raise $3 billion.
"The market is full of excitement, because Hyundai remains one of the strongest players in the automotive segment in India, constantly increasing its market share. We can expect Hyundai to get a better valuation compared to its rivals like Maruti," says Santosh Meena, head of research at Swastika Investmart Ltd., adding, "Strong demand is anticipated for the IPO with robust liquidity on market. However, there are concerns that this could lead to a potential dry-up of liquidity on the secondary market."
As part of the IPO, Hyundai Motor Co. will sell 142 million shares out of the 812 million from its subsidiary in India, the cited source writes. With the funds it raises, Hyundai hopes to expand its operations in India, the third largest car market in the world. Hyundai is the second best-selling carmaker in India after Maruti Suzuki, according to the source.
According to sources cited by Bloomberg, Hyundai is targeting a $19 billion valuation in the initial public offering of its Indian division. The automaker plans to sell a 17.5 percent stake, and the listing of Hyundai Motor India is likely to take place in Mumbai on October 22, the sources said. According to them, a mix of foreign and local institutional investors, including asset managers, insurers, pension funds and sovereign wealth funds, have expressed preliminary interest in buying shares in the IPO, and Hyundai may file updated documents with the regulatory authority. stock market regulation in India. The sources say that deliberations regarding the IPO are ongoing, and details such as the size of the offer, value and timing may change.
Hyundai Motor representatives refused to comment on this information.
An initial public offering of the expected size for Hyundai Motor India would break the record set by Life Insurance Corp. of India, which has raised 206 billion rupees ($2.5 billion) in 2022. It would also be one of Asia's largest initial public offerings in recent years. Listings on Indian markets have already attracted more than $9 billion this year, roughly double the amount for the same period in 2023, data compiled by Bloomberg show.
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