Hyundai Motor India Plans Mega IPO, Eyes Largest Offering

Hyundai Motor India Ltd (HMIL), the local subsidiary of South Korea’s Hyundai Motor Co, is reportedly gearing up for a massive initial public offering (IPO), anticipated to be the largest in India’s history. 

The IPO is likely to be launched around Diwali, between September and November this year, according to The Economic Times.

Valuation and Fundraising Targets of Hyundai Motor IPO:

Bankers have valued HMIL at $22-28 billion, with plans to dilute 15-20% to raise $3.3-5.6 billion (Rs 27,390 to Rs 46,480 crore). 

This potential valuation would make it larger than the LIC IPO, which had an issue size of Rs 21,000 crore. 

Global investment banks, including Goldman Sachs, Morgan Stanley, JP Morgan, and HSBC, have reportedly pitched IPO proposals to Hyundai.

Significant Milestone for Hyundai in India:

HMIL, launched in India in 1996, emerged as the second-largest passenger vehicle seller in the country after Maruti Suzuki last year. 

The IPO move is a significant milestone for Hyundai in the Indian market. The company is known for its popular models, such as Creta, Verna, i20, i10, and Elantra.

Post-Election Momentum Expected:

Sources suggest that the momentum for the IPO is expected to pick up after the upcoming elections. 

Hyundai’s valuation at the upper band is estimated to be around Rs 23.3 trillion, surpassing the valuations of major Indian automakers like Mahindra & Mahindra and Bajaj Auto.

Recent Acquisition and Investment Plans:

In a strategic move, HMIL recently acquired General Motors India’s Talegaon plant in Maharashtra and announced a substantial investment of Rs 6,000 crore in the state. 

With an annual production capacity of 130,000 units, the plant is slated to resume manufacturing in 2025.

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