Hyundai Set to Offer 142 Million Shares for India IPO: Report

By Trisha Andrada

Jun 15, 2024 02:15 AM EDT

Hyundai Motor India requested permission from the relevant authorities to list on the Mumbai stock exchange on Saturday, June 15. This offering could be the largest in the country and would allow the South Korean parent firm to sell up to 142 million shares, which is about 17.5% of the business.

Hyundai Seeks to Raise Around $2.5-$3 Billion

Insiders have informed Reuters that Hyundai is targeting a fundraising of around $2.5-$3 billion, with a valuation of up to $30 billion.

According to Bloomberg, financial institutions such as Morgan Stanley, Citigroup, Kotak Mahindra Bank, JP Morgan Chase & Co., and HSBC are advising the firm on selling its shares.

Hyundai, the number two automaker in India, will not be issuing any new shares during the initial public offering (IPO). Instead, the South Korean parent company will sell a portion of its interest in the fully owned subsidiary to retail and other investors via an "offer for sale" process.

Hyundai Motor India said in its Saturday draft prospectus that it hopes to increase its visibility and brand image through the listing of its equity shares and create a public market for those shares and liquidity.

Hyundai of South Korea will sell approximately 17.5%, or 142 million shares, out of 812 million. The final percentage may be lower, according to the sources.

Hyundai Could Be India's First Carmaker To Go Public in 20 Years

Reuters said that after Maruti Suzuki's 2003 IPO, Hyundai Motor India will become the first automaker to go public in 20 years.

Since the listing might simplify future fundraising without relying on its Korean parent, Hyundai Motor India has an advantage over competitors like Maruti Suzuki and Tata Motors.

India is Hyundai's third-largest income producer and a key development path. It is the world's biggest automobile market, behind China and the United States.