In a strategic move, Hyundai Motor, the renowned South Korean automaker, is contemplating a substantial initial public offering (IPO) for its Indian subsidiary, Hyundai Motor India.
The company is reportedly aiming for an IPO of at least $3 billion, potentially reaching a valuation of up to $30 billion.
If successful, this would mark the largest IPO in India, surpassing the notable LIC IPO, which raised $2.7 billion and debuted on the stock exchange in 2022.
Details of Hyundai Motor India’s IPO Plans
1. Aspirations for a Historic IPO
Hyundai Motor India, the second-largest car company in the country, is reportedly considering launching its IPO around Diwali, marking nearly 30 years of operations in India.
The move signifies Hyundai’s ambition to tap into India’s vibrant IPO market and unlock the value of its robust Indian business.
2. Early-Stage Discussions and Investment Banks
Sources reveal that discussions regarding the IPO are still in the early stages, with Hyundai Motor India engaging in talks with prominent investment banks, including JPMorgan, Morgan Stanley, Citi, and Bank of America.
While no official appointment has been made, the exploration of IPO possibilities aligns with Hyundai’s strategy to leverage India’s thriving IPO landscape.
3. India’s IPO Boom and Strategic Timing
Hyundai’s decision to explore an IPO for its Indian unit comes at a time when India is experiencing a surge in IPO activities.
The company aims to capitalize on this trend, considering the strategic timing and potential investor interest in one of India’s prominent automotive players.
The move signifies Hyundai’s confidence in the Indian market and its commitment to further strengthening its presence in the country.
As discussions progress, the automotive giant positions itself for a groundbreaking financial milestone in India’s capital market.
