Hyundai Motor India Ltd (HMIL), the Indian subsidiary of South Korea’s Hyundai Motor Co., is gearing up for a groundbreaking initial public offering (IPO) that could potentially be the largest in India’s history, according to a report by The Economic Times.
The IPO is expected to be launched during the festive season of Diwali, between September and November this year. Bankers have reportedly valued HMIL between $22-28 billion. To fuel this ambitious IPO, the automaker is considering diluting 15-20% of its stakes, aiming to raise a substantial $3.3-5.6 billion (Rs 27,390 to Rs 46,480 crore). If successful, this would surpass the size of LIC’s IPO, which had an issue size of Rs 21,000 crore.
Global investment heavyweights, including Goldman Sachs, Morgan Stanley, JP Morgan, and HSBC, have already made IPO pitches to Hyundai, indicating significant international interest in the offering.
Last year, HMIL secured its position as the second-largest passenger vehicle seller in India after Maruti Suzuki. The current valuation of Maruti Suzuki stands at Rs 33.4 trillion, while Tata Motors is valued at Rs 29.3 trillion. At the upper valuation band, Hyundai India would be estimated at around Rs 23.3 trillion, surpassing the market value of both Mahindra & Mahindra and Bajaj Auto.
The momentum for this monumental IPO is expected to intensify after the conclusion of the Lok Sabha elections in India. One source mentioned in the report stated, “But the work has begun at the headquarters. This is a strategic market, and Hyundai wants to deepen the relationship. This, arguably, is the tentpole event for them in India. The momentum is expected to pick up further after the national elections this summer.”
Earlier this year, HMIL made headlines by acquiring General Motors India’s Talegaon plant in Maharashtra, announcing a substantial investment of Rs 6,000 crore in the state. The plant, with an annual production capacity of 130,000 units, is slated to resume manufacturing operations in 2025.
Hyundai’s lineup in India includes popular models such as Creta, Verna, i20, i10, and Elantra, among others. As the automotive giant takes bold steps towards its IPO, all eyes will be on Hyundai Motor India’s journey towards potentially launching India’s largest-ever initial public offering.