Hyundai Motors is one of the top car brands in India and is expected to break the record nearly two years after India’s largest IPO LIC was launched.
Hyundai Motor Company is assessing a plan to list in the Indian stock market amid the country’s IPO boom.
According to anonymous sources, Hyundai India’s IPO could be the country’s largest IPO offering.
Renowned International investment banks such as Goldman Sachs, Citi, HSBC, Deutsche Bank, JP Morgan, Bank of America, UBS, and HSBC were reportedly in Seoul, South Korea last week to present an IPO plan to Hyundai executives.
According to these prominent bankers, the company is worth $22-28 billion. Hyundai is considering selling a part of its ownership between 15% to 20% to raise $3.3-5.6 billion (Rs 27,390 crore to Rs 46,480 crore) as per ET reports.
As per sources, Hyundai plans to list an IPO in Diwali this year between September and November at the initial level of the company’s discussion.
It will also be influenced by several external variables, such as the health of the Indian financial markets and different macroeconomic variables.
LIC had broken the record of India’s largest IPO in 2022 when it launched its IPO in 2022 with an issue size of Rs. 21,000 crores.
Reason Behind Hyundai Planning Mega IPO In India
The market capitalization of Hyundai Motors is $39 billion and is listed in South Korea. Reports following Hyundai Motor India hinted that listing the Indian affiliate would be a component of South Korea’s value-up initiative, which aims to reduce the so-called ‘Korea Discount’ in the financial markets and improve the valuation of underachieving stocks.
Sources say, IPO work has started at the head office. Hyundai’s objective is to strengthen its ties in this strategically important market.
Hyundai is considering this IPO as their main event in India. The upcoming Lok Sabha election this summer is expected to provide additional impetus for the movement.
IPO Could Make Hyundai the Most Valuable Automaker in India
At the expected valuation and size, if Hyundai manages to launch biggest the IPO, then it is expected to become India’s most valuable automaker, ahead of the current biggest car makers in India like Maruti Suzuki and Tata Motors.
Other car brands in India as per their market capitalization in our stock market are:
- Tata Motors – Rs 3.44 Lakh crore
- Bajaj Auto — Rs 2.21 Lakh crore
- TVS Motors – Rs 97,700 crore
- Eicher Motors – Rs 1.06 lakh crore
- Hero MotoCorp – Rs 94,700 crore
- Maruti Suzuki – Rs 3.33 lakh crore
- Mahindra & Mahindra – Rs 2.01 lakh crore