Automotive
The Indian Unit Of Hyundai Plans An IPO Worth $3 Billion
(CTN News) – Hyundai Motor is preparing for a groundbreaking move in the Indian market, eyeing an Initial Public Offering (IPO). A source familiar with the matter reported on Friday that this would be the country’s largest IPO.
The move comes as Hyundai intensifies its focus on the Indian market in anticipation of Tesla’s impending entry into the market.
Potential valuation and early talks
A number of banks have begun preliminary discussions regarding Hyundai Motor India’s IPO.
 In comparison to current market capitalization in Seoul of $42 billion, the IPO could potentially value its Indian operations at up to $30 billion.
On Monday, Hyundai’s share price soared 5 percent to its highest level in nearly three years after the announcement.
Hyundai India would be behind Tata Motors India and Maruti Suzuki India at this valuation.
An insider told Reuters, “They want to take advantage of India’s IPO boom. India’s capital markets haven’t stood out like this before.”
Booming IPOs and capital markets in India
With a market value of $4 trillion, India’s stock market has overtaken Hong Kong to become the fourth-largest.
India’s capital market has become a focus for domestic and foreign investments as the Nifty 50 index rises by 20 percent in 2023.
Due to expectations of policy stability, the second half of 2023 saw a boom in IPOs.
 This trend aligns with potential IPO, allowing the company to take advantage of India’s flourishing capital markets.
Hyundai’s IPO talks with big banks
JP Morgan, Morgan Stanley, Citi, and Bank of America have been in talks with about an Indian IPO.
In spite of the fact that formal appointments haven’t been made yet, India business is exploring all options.
In 2024, Ola Electric and Swiggy, both backed by SoftBank, are expected to go public.
Even though the banks haven’t commented, Hyundai’s plan is gaining traction.
The Hyundai India push and Tesla’s competition
Hyundai, India’s second-largest car maker, is strategically refocusing on India and the United States after scaling back production in China.
Besides Maruti Suzuki, Hyundai is the only foreign company to have a significant market share in India.
Move comes as it faces growing competition from domestic players like Tata Motors.
 The IPO might boost position against Tesla in the Indian EV market.
‘If India unit goes public in the country, it might help better compete with Tesla in the Indian EV market in the future,” noted industry analysts.
EV investments in India
Over the next decade, plans to invest close to $4 billion in the Indian market.
They’re for new electric cars, expanding charging infrastructure, and assembling battery packs.
This investment includes acquiring a former General Motors plant in India to boost production capacity.
Currently, Hyundai makes cars in Chennai, dubbed “Detroit of Asia”.
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