Hyundai Motor India files paper to raise Rs 25,000 crore via IPO

This is the first time that Hyundai Motor is eyeing to get listed on a stock exchange outside its home country South Korea.
Representative Image
Representative Image (File Photo | AP)

NEW DELHI: South Korean automaker Hyundai Motor India is said to have filed draft papers for an initial public offering (IPO) for its India unit (Hyundai Motor India Ltd (HMIL)) with capital markets regulator SEBI on Friday.

According to reports, Hyundai is likely to sell 14.2 million shares or 17.5% stake in order to raise Rs 25,000 crore (about $3 billion) via this IPO which also will be India’s biggest in its capital market history. At the moment, LIC holds the distinction of launching India’s biggest IPO.

Sources had previously estimated Hyundai’s India unit would command a valuation of up to $30 billion, making it one of the most valuable auto companies on the bourses.

According to reports, HMIL will not issue new shares in the IPO which will involve its South Korean parent selling part of its stake in the wholly owned unit to retail and other investors via a so-called “offer for sale” route. When contacted, Hyundai Motor India declined to comment.

This is the first time that Hyundai Motor is eyeing to get listed on a stock exchange outside its home country South Korea. The India IPO is aimed at accelerating Hyundai’s expansion in the local market and reducing its dependency on the parent company for capital needs.

HMIL has committed an investment of more than Rs 30,000 crore in the Indian market as it looks to expand its manufacturing capacity and transit towards electric vehicles. The company has plans to sell made-in-India EVs starting as early as next year, as well as set up a charging network and a battery facility.

Earlier this year, HMIL completed the acquisition of General Motors India’s Talegaon Plant in Maharashtra which will play the role of a catalyst in achieving HMIL’s 1 million annual production capacity milestone.

Hyundai entered India some 25 years ago and has firmly established itself as the country’s second largest carmaker, only after Maruti Suzuki. It is also one of the top exporters of PVs from India.

Currently, HMIL commands a market share of little more than 14% and faces tough competition from Tata Motors for the number 2 spot. Hyundai’s domestic sales in FY24 were reported at 614,721 units, up 8.3% YoY. As per reports, HMIL had clocked a profit of Rs 4,382 crore in FY24.

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