Key Points
Hyundai Motors India unit sought regulatory approval on Saturday for a stock market listing in Mumbai, which could be thenations biggestand will see the South Korean parent sell a stake of up to 17.5% in the company.. ..
The initial public offering (IPO) will make it the countrys first car maker to go public in two decades since Maruti Suzuki in 2003, and would come just as Indian stock markets are trading near record highs.. . Hyundai counts India as a crucial growth market where it has two manufacturing units and has invested $5 billion, with commitments to pump in another $4 billion over the next decade..
The Hyundai draft prospectus filed gave no details of the pricing of the IPO or the companys valuation, but sources have said Hyundai aims to raise around $2.5 to $3 billion at a valuation of up to $30 billion.. . Hyundai, Indias second-biggest car maker behind Maruti Suzuki, will not issue new shares in the IPO, which will involve its South Korean parent selling part of its stake in the wholly owned unit to retail and other investors via a so-called offer for sale route.. ..
The listing is seen putting Hyundai Motor India on a stronger footing versus Maruti Suzuki, Tata Motors andother rivalsas it could make future fundraising easier, without the need to depend on its Korean parent.. . Hyundai expects the listing of the equity shares in India will enhance our visibility and brand image, and provide liquidity and a public market for the shares, the company said in the draft prospectus filed on Saturday.. ..
With the IPO, Hyundai aims to unlock value for the Indian business and also help the Korean automaker shed its valuation discount compared to global and Asian peers.. . Benchmark Indian stock indices have doubled between 2019 and 2023, while Seouls KOSPI index has risen just 30% over the same period.. . Hyundai is being advised on the IPO by investment banks Citi, JP Morgan, HSBC, Morgan Stanley and Indias Kotak..
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