Hyundai Motor to unlock $20 billion valuation with landmark IPO: 142 million shares up for grabs in India's largest automotive public offering
Hyundai Motor Company announced plans to sell 142 million shares it holds in Hyundai Motor India as part of the subsidiary's highly anticipated initial public offering (IPO). The move is expected to raise significant capital for the South Korean automaker.
In a regulatory filing on October 13, Hyundai Motor disclosed its intention to divest approximately 17.5% of its stake in Hyundai Motor India. Following the sale, the company will retain 670 million shares, equivalent to an 82.5% stake. According to sources familiar with the matter, Hyundai Motor aims to raise $3 billion through the IPO, valuing Hyundai Motor India at roughly $20 billion.
This would make it the largest IPO in India's automotive sector in two decades, following market leader Maruti Suzuki's IPO in 2003. Hyundai Motor India's IPO is expected to generate significant interest from investors, given the company's strong market presence and growth prospects. The Indian automotive market has experienced rapid expansion in recent years, driven by increasing demand for passenger vehicles.
“The IPO will provide Hyundai Motor India with the necessary funds to expand its operations, enhance its product offerings, and strengthen its competitive position in the Indian market,” said a Hyundai Motor spokesperson. The IPO pricing range has not been finalized, and the company has not disclosed the specific timeline for the offer. However, sources suggest that the IPO is likely to take place in the coming months.
Hyundai Motor India is the second-largest passenger vehicle manufacturer in India, with a market share of approximately 17%. The company has a diverse product portfolio, including popular models such as the Hyundai i10, i20, and Creta.
The IPO is part of Hyundai Motor's broader strategy to optimize its capital structure and invest in emerging technologies, including electric vehicles and autonomous driving. “Hyundai Motor's decision to divest shares in its Indian unit reflects the company's commitment to enhancing shareholder value and driving long-term growth,” said Lee Sang-hyun, an analyst at KB Securities.
The IPO is expected to attract significant attention from institutional investors, given Hyundai Motor India's strong financial performance and growth prospects. Hyundai Motor India reported revenue of ₹44,332 crore (approximately $5.6 billion) for the fiscal year 2022-2023, with a net profit of ₹2,944 crore (approximately $370 million).