Hyundai Plans Major IPO for India Unit Aiming to Raise $2.5 Billion

Hyundai Motor Co. is gearing up to file for an initial public offering (IPO) for its India unit as early as this month, aiming to raise approximately $2.5 billion. This move could potentially make it one of the largest IPOs ever in India, closely following the significant $2.5 billion offering by Life Insurance Corp. of India in 2022.

According to insiders familiar with the matter, the South Korean automaker is targeting a valuation of up to $25 billion for the IPO, which is planned to be listed by the end of the year. These sources, preferring anonymity due to the confidentiality of the discussions, also mentioned that Hyundai has enlisted the services of Citigroup Inc., HSBC Holdings Plc, JPMorgan Chase & Co., Kotak Mahindra Bank Ltd., and Morgan Stanley as advisors for this landmark share sale.

Potential Impact and Strategic Expansion

While the final details concerning the size and timing of the IPO are yet to be decided, the proceeds from this significant fundraising effort are expected to be channeled towards expanding Hyundai’s operations in India. Hyundai Motor India Ltd., the second-largest car manufacturer by sales in the country, stands to benefit substantially from the capital influx, bolstering its market position and operational capabilities.

Market and Economic Context

The timing of this IPO aligns with a period of robust growth and transformation within India’s automotive sector. With the Indian market showing promising signs of expansion, the capital raised from the IPO will likely support Hyundai’s strategic initiatives aimed at capturing a larger market share.

Reporting and Regulatory Steps

Reports indicate that Hyundai’s India unit is set to file a draft prospectus with the market regulator within the next two weeks. This regulatory step is crucial for progressing towards the anticipated listing.

Industry and Market Insights

Hyundai Motor Co., the world’s third-largest carmaker, has a significant footprint in the global automotive industry. The IPO of its India unit is expected to draw considerable attention from investors, given the company’s established market presence and the promising growth potential of the Indian automotive sector.

This IPO not only underscores Hyundai’s commitment to expanding its operations in India but also highlights the increasing attractiveness of the Indian market to global investors. As the details unfold, this offering is poised to be a pivotal moment for both Hyundai Motor Co. and the broader Indian IPO landscape.