Hyundai revs up for record-breaking IPO in India’s auto arena
The automaker aims to raise between $3.3-5.6 billion by diluting 15-20% of its stakes, surpassing LIC's record IPO with $21,000 crore issue
Hyundai Motor India Ltd (HMIL) is gearing up for its biggest move yet, planning to launch an initial public offering (IPO) that could mark a significant milestone for the country. According to The Economic Times (ET), this IPO, expected between September and November, could be valued at a whopping $22-28 billion, making it potentially the largest IPO in India’s history. The automaker aims to raise between $3.3-5.6 billion by diluting 15-20% of its stakes. This would surpass the previous record held by LIC’s IPO with a ₹21,000 crore issue size.
The buzz around this IPO is attracting major global investment banks like Goldman Sachs, Morgan Stanley, JP Morgan, and HSBC. They’ve been in Seoul recently to pitch their ideas to Hyundai. The timing of the IPO launch is strategic, with momentum expected to build after India’s Lok Sabha elections. One insider revealed that while the full throttle will likely kick in post-elections, preparations are already underway at Hyundai’s headquarters.
Hyundai Motor India Ltd has been a prominent player in the Indian market since its inception in 1996. It held the title of the second-largest passenger vehicle seller after Maruti Suzuki in the previous year. With Maruti Suzuki valued at ₹33.4 trillion and Tata Motors at ₹29.3 trillion, Hyundai’s estimated valuation of ₹23.3 trillion could propel it into a league surpassing Mahindra & Mahindra and Bajaj Auto. This move signifies Hyundai’s commitment to deepening its roots in India, a key strategic market.
Earlier this year, Hyundai made headlines by acquiring General Motors India’s Talegaon plant in Maharashtra, demonstrating its commitment to expansion and investment in the Indian market. The acquisition, coupled with Hyundai’s planned investment of ₹6,000 crore in the state, underscores its long-term vision. The refurbished plant is slated to recommence manufacturing operations in 2025, adding to Hyundai’s production capabilities in India.
In terms of product offerings, Hyundai boasts a diverse portfolio catering to various segments of the Indian market. From the popular Creta and Verna to the i20, i10, and Elantra, Hyundai has established a strong presence across the spectrum. This wide array of offerings positions Hyundai favorably to capitalize on diverse consumer preferences and market dynamics.
As the automotive landscape evolves, Hyundai’s strategic moves underscore its adaptability and foresight. The decision to go public reflects not only confidence in its own trajectory but also a bet on the resilience and growth potential of the Indian market. With India emerging as a key battleground for global automakers, Hyundai’s IPO could set the stage for a new chapter in its Indian journey.
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