Hyundai Motors from South Korea is evaluating a plan to list its local unit to take advantage of India's IPO boom. This comes almost three decades after Hyundai Motor India (HMIL) was launched and could be the country's most extensive initial public offering if it happens. HMIL was India's second-largest passenger vehicle seller last year, after Maruti Suzuki India.
Several global investment banks, including Goldman Sachs, Citi, Morgan Stanley, JP Morgan, Bank of America, HSBC, Deutsche Bank, and UBS, were in Seoul last week to pitch an IPO to the Hyundai leadership. According to bankers, the company is valued at $22-28 billion. Hyundai is considering a 15-20% dilution to raise $3.3-5.6 billion (₹27,390 crore to ₹46,480 crore).
The IPO record was set in 2022 by LIC of India with an issue size of ₹21,000 crore. India has recently become the fourth-largest equity market in the world, overtaking Hong Kong. At the upper band of $28 billion (₹23.2 lakh crore), HMIL will be valued at more than Mahindra and Mahindra, Adani Power, and Bajaj Auto.
Hyundai Motor Co (HMC) is listed in South Korea at a market capitalization of $39 billion. Analysts believe listing the Indian subsidiary would be part of South Korea's 'value-up' program, aimed at improving the valuation of underperforming stocks and slashing the so-called 'Korea discount' in the financial markets.
