Hyundai Motor’s India arm aims for historic IPO, eyes $3B raise

Hyundai Motor’s India unit has filed an IPO prospectus with the Securities and Exchange Board of India (SEBI). If the unit succeeds in its $3 billion IPO, it is expected to set a record as the largest IPO in India’s history.

Hyundai Motor Group Chairman Chung Eui-sun poses for a commemorative photo with local employees after concluding a town hall meeting at the Delhi headquarters on April 23, 2024 (local time)./Hyundai Motor Group

According to Bloomberg, Hyundai Motor’s India unit stated in its application submitted to SEBI on June 15 that it plans to sell up to 142 million shares, or 17.5% of the total shares held by its parent company Hyundai Motor, which amounts to 820 million shares. This IPO involves selling a portion of the existing stake held by Hyundai Motor without issuing new shares to the market.

Hyundai Motor aims to raise up to $3 billion from the IPO. According to CNBC, this IPO is set to become the largest since the listing of Life Insurance Corporation of India in 2022. In terms of revenue, Hyundai Motor’s India unit is the second-largest automotive company in India after Maruti Suzuki India.

Established in India in 1996, Hyundai Motor began production of its first model, the Santro, at its Chennai plant in Tamil Nadu in 1998. Currently, Hyundai operates its first and second plants in Chennai and has a Kia plant in Anantapur. Last year, Hyundai acquired a factory in the Talegaon area from General Motors (GM).

Previously, foreign companies such as Maruti Suzuki India, Hindustan Unilever, Siemens, and ABB India have been listed on the Indian stock market. With an increasing number of foreign companies pursuing listings on the Indian stock market, it is expected to achieve another record performance this year, following last year’s historic high. According to CNBC, last year, 238 companies raised $7.35 billion through IPOs in the Indian stock market, the highest ever, and this trend is continuing into this year.