Hyundai IPO on the cards? Hyundai Motor CompanyThe South Korean automaker is considering listing its local unit in India to take advantage of the country’s booming IPO market, according to sources familiar with the matter cited by ET. The move, which comes nearly three decades after the launch of Hyundai Motor India (HMIL), could potentially become India’s largest initial public offering.
HMIL was the second largest passenger vehicle seller in India last year. Major global investment banks such as Goldman Sachs, Citi, Morgan Stanley, JP Morgan, Bank of America, HSBC, Deutsche Bank and UBS have recently offered IPOs led by Hyundai in Seoul. The company is estimated to be valued at $22-28 billion and is looking for 15-20% dilution to raise $3.3-5.6 billion (Rs 27,390 crore to Rs 46,480 crore). Hyundai’s global communications chief in Seoul did not respond to questions regarding the matter.
In 2022, LIC of India sets IPO record with issue size of Rs 21,000 crore. India recently overtook Hong Kong to become the fourth largest equity market globally. If it is valued at the upper band of $28 billion (Rs 23.2 lakh crore), HMIL’s valuation will exceed that of Mahindra & Mahindra, Adani Power and Bajaj Auto.

Among major Indian auto companies, only Maruti Suzuki and Tata Motors are valued higher at current market prices. Analysts believe South Korea-listed Hyundai Motor Co., with a market capitalization of $39 billion, aims to improve the valuation of its underperforming shares and tap the ‘Korea discount’ in financial markets through the listing of its Indian subsidiary. ‘ has to be reduced.
South Korean automakers are currently trading at lower price-to-earnings (P/E) ratios than their Japanese and American counterparts. Subsidiaries based in growth markets like India have the potential to trade at higher P/E multiples than their parent companies.
According to the Financial Daily report, the plan is to list around Diwali, between September and November this year. However, these discussions are preliminary, and the final details will depend on factors such as the state of Indian capital markets and various macroeconomic conditions. A source said the move is strategic for Hyundai in India and is expected to gain momentum after the national elections later this year.
With a valuation of $28 billion, HMIL would be valued at 48 times its estimated FY23 earnings, while at the lower end of the $22 billion band, it would be valued at 38.4 times.
Read from ET Hyundai IPO Plan
In 2023, HMIL sold 602,000 units in India, an increase of 8.9% from the previous year, and had a market share of 13.7%. Maruti Suzuki led the market with 41.7% share, followed by Tata Motors with 13.5%. HMIL’s turnover crossed Rs 60,000 crore ($7.2 billion) in FY23, up 27% from FY22, and its profit rose 62% to Rs 4,653 crore ($550 million), making it one of the largest unlisted automotive companies in India. I became the most.