Hyundai Motor Plans Massive $19 Billion IPO for Indian Subsidiary
The South Korean automaker Hyundai Motor is planning an initial public offering (IPO) of its Indian subsidiary, Hyundai Motor India Ltd. The anticipated valuation of the company is around $19 billion, which could make it the largest listing in India.
The company hopes to raise $3.3 billion by selling 17.5% of the shares of its Indian subsidiary through the IPO, which is scheduled for October 22nd in Mumbai. However, the details and timeline of the deal may still change.
“This large-scale IPO will surpass the record set by the state-owned insurance company Life Insurance Corp. of India, which raised 206 billion rupees ($2.5 billion) in 2022. Additionally, it will be one of the largest public offerings in Asia in recent years.”
Numerous Indian and international institutional investors, including asset managers, insurance and pension funds, as well as sovereign funds, have shown preliminary interest in acquiring the shares.
India’s Securities and Exchange Board of India (SEBI) has this week granted Hyundai the approval to proceed with the IPO. The company’s updated application may be submitted as early as October 7th.
According to Bloomberg, the total volume of initial public offerings conducted in India since the beginning of the year exceeds $9 billion, which is twice the amount recorded in the same period of 2021.
Additionally, in October 2024, Japan is also expected to witness its largest IPO in the last six years – the public offering of the Tokyo Metro, valued at $4.7 billion.
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