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Updated February 5th, 2024 at 13:48 IST

Hyundai plans $3 billion IPO for Indian unit, targets $30 billion valuation

At a projected valuation of $25-30 billion, Hyundai's India operation would represent over half of its current market capitalisation in Seoul.

Business Desk
Hyundai
Hyundai | Image:Hyundai
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Hyundai's India IPO: Hyundai Motor is reportedly considering an initial public offering (IPO) for its Indian unit, aiming to raise at least $3 billion with a potential valuation of up to $30 billion. If successful, this could become the country's largest-ever stock offering. Sources indicate that Hyundai Motor India is in preliminary discussions regarding the IPO and has engaged with various banks for advice. Although the South Korean automaker's India unit declined to comment, sources suggest that Hyundai aims to capitalise on India's booming IPO market and unlock value for its Indian business.

Global market shift

At a projected valuation of $25-30 billion, Hyundai's India operation would represent over half of its current market capitalisation in Seoul, which stands at $42 billion. The company is exploring opportunities for "value unlocking" through the IPO. Investment banks such as JP Morgan, Morgan Stanley, Citi, and Bank of America have been in talks with Hyundai, although formal appointments have not been confirmed. Hyundai's move towards an IPO in India follows its focus on the South Asian nation and the United States, with recent scaling back in China and an exit from the Russian market.

EV expansion plans

Hyundai, the second-largest car maker in India, has been strengthening its presence in the country, planning substantial investments of close to $4 billion over the next decade. This includes ventures into electric vehicles (EVs), charging stations, and a battery pack assembly unit. The company faces growing competition in India, with its market share currently around 15 per cent, while domestic players like Tata Motors have been introducing new SUVs and electric cars. Analysts suggest that if Hyundai's India unit goes public, it could enhance the company's competitiveness, especially against Tesla, which is planning to enter the Indian market.

(With Reuters Inputs)

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Published February 5th, 2024 at 13:48 IST

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