Hyundai's Big Move in India's Capital Market
June 18, 2024, 9:39 pm
Location: India, Delhi, New Delhi
Employees: 10001+
Founded date: 1983
Total raised: $53.97M
Hyundai Motor, a South Korean giant, is gearing up to sell a stake in its India unit through a massive IPO, aiming to raise billions and make a mark in the Indian market.
Hyundai Motor, a global automotive powerhouse, is set to make waves in the Indian capital market by selling a stake of up to 17.5% in its India unit through an initial public offering (IPO). This move could potentially raise up to $3 billion, making it India's biggest ever IPO.
The South Korean automaker is expected to file the necessary paperwork for the IPO with the stock market regulator soon, with plans to list in Mumbai once approved. Hyundai Motor India Ltd, the country's second-largest carmaker, will not issue new shares in the IPO. Instead, its South Korean parent will sell part of its stake in the wholly owned unit to retail and other investors through an "offer for sale" route.
This IPO will mark Hyundai's first listing outside South Korea, with the company aiming to raise between $2.5 billion and $3 billion from the stake sale. While Hyundai is seeking approval to sell up to 17.5% stake in the IPO, the final percentage could be lower.
Sources estimate Hyundai's India unit to be valued at up to $30 billion, showcasing the potential for massive gains in the Indian market. The IPO is part of Hyundai's strategy to accelerate its expansion in India, where it has been operating for over 25 years and has gained popularity with its affordable cars like Santro and Creta.
By reducing its dependence on its Korean parent for funds, Hyundai Motor India will gain the financial strength to compete with local rivals like Tata Motors and pursue its growth plans in a market that contributes significantly to its global sales. The company has ambitious plans to sell locally made electric vehicles, set up a charging network, establish a battery facility, and expand its manufacturing capacity in India.
In its filing with the Securities and Exchange Board of India (SEBI), Hyundai will list potential risks for investors, including its dependence on the Korean parent and related party transactions within the Hyundai Group. The company also highlights the risk of unavailability or reduction of government incentives for EV makers in India.
Hyundai plans to issue up to 142 million shares in the IPO out of a total of 800 million outstanding shares, indicating a significant opportunity for investors to be part of Hyundai's growth story in India. With the Indian market showing strong potential and Hyundai's strategic moves in place, the IPO is poised to be a game-changer for the automotive giant in the Indian capital market.
Hyundai Motor, a global automotive powerhouse, is set to make waves in the Indian capital market by selling a stake of up to 17.5% in its India unit through an initial public offering (IPO). This move could potentially raise up to $3 billion, making it India's biggest ever IPO.
The South Korean automaker is expected to file the necessary paperwork for the IPO with the stock market regulator soon, with plans to list in Mumbai once approved. Hyundai Motor India Ltd, the country's second-largest carmaker, will not issue new shares in the IPO. Instead, its South Korean parent will sell part of its stake in the wholly owned unit to retail and other investors through an "offer for sale" route.
This IPO will mark Hyundai's first listing outside South Korea, with the company aiming to raise between $2.5 billion and $3 billion from the stake sale. While Hyundai is seeking approval to sell up to 17.5% stake in the IPO, the final percentage could be lower.
Sources estimate Hyundai's India unit to be valued at up to $30 billion, showcasing the potential for massive gains in the Indian market. The IPO is part of Hyundai's strategy to accelerate its expansion in India, where it has been operating for over 25 years and has gained popularity with its affordable cars like Santro and Creta.
By reducing its dependence on its Korean parent for funds, Hyundai Motor India will gain the financial strength to compete with local rivals like Tata Motors and pursue its growth plans in a market that contributes significantly to its global sales. The company has ambitious plans to sell locally made electric vehicles, set up a charging network, establish a battery facility, and expand its manufacturing capacity in India.
In its filing with the Securities and Exchange Board of India (SEBI), Hyundai will list potential risks for investors, including its dependence on the Korean parent and related party transactions within the Hyundai Group. The company also highlights the risk of unavailability or reduction of government incentives for EV makers in India.
Hyundai plans to issue up to 142 million shares in the IPO out of a total of 800 million outstanding shares, indicating a significant opportunity for investors to be part of Hyundai's growth story in India. With the Indian market showing strong potential and Hyundai's strategic moves in place, the IPO is poised to be a game-changer for the automotive giant in the Indian capital market.