Hyundai Motor Eyes India IPO, Aims for $3 Billion Minimum

Hyundai Motor is making significant moves in the Indian market as it gears up for a landmark initial public offering (IPO), reportedly enlisting investment banks JPMorgan and Citi to advise on the anticipated IPO, aiming to raise a minimum of $3 billion (₹24,900 crore).

Hyundai Motor IPO Preparation and Timeline:

Sources, as reported by Reuters, indicate that Hyundai is planning to submit regulatory documents for approval in India between May and June. This strategic move underscores Hyundai’s commitment to tap into the growing prospect of the Indian market.

With a substantial 15% market share in India, Hyundai is eyeing an IPO that could value its local unit at up to $30 billion, potentially making it the country’s largest IPO. 

This ambitious fundraising effort would value Hyundai’s Indian operations at over half its market capitalization of around $47 billion in Seoul.

Advisory Team and Strategic Considerations:

While JPMorgan and Citi are set to play key advisory roles, Hyundai may also engage domestic Indian investment banks for the IPO in the coming months. 

However, the final lineup remains subject to change, with crucial decisions pending on the timing of the sale and the number of shares to be offered by the South Korean parent company.

Utilization of Raised Capital:

Should Hyundai proceed with the IPO, it plans to leverage the raised capital to expand its operations, particularly in a market that accounted for 13% of the company’s global sales last year, as reported by Bloomberg. 

This strategic investment underscores Hyundai’s long-term commitment to bolstering its presence in India.

India’s Growing IPO Market:

India has become an increasingly attractive destination for IPOs, with approximately $27 billion raised in IPOs and follow-on share sales last year, surpassing Hong Kong for the first time in at least three decades. 

The IPO landscape in India continues to evolve, with Hyundai’s potential listing poised to make significant waves in the market.

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