Hyundai Motor Corporation announced on Wednesday that it has yet to reach a decision regarding the listing of its Indian subsidiary. The multinational automaker emphasised that updates on the matter will be disclosed either in one month's time or upon finalisation of its Initial Public Offering (IPO) plans, as per Reuters' report. According to the previous report, the Hyundai Motor India IPO was slated to be launched around Diwali, spanning between September and November this year.
In a regulatory filing, Hyundai Motor stated, "As a global company, we constantly review various measures, including listing overseas subsidiaries, to increase corporate value, but nothing has been decided."
Reuters had previously disclosed on February 6 that the South Korean automaker is considering listing its India unit with the intention of raising a minimum of $3 billion, potentially marking India's largest IPO to date.
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According to sources familiar with the matter, Hyundai Motor India is currently engaged in preliminary discussions with several banks regarding the IPO, including JP Morgan, Morgan Stanley, Citi, and Bank of America. Global investment bank such as Goldman Sachs, Morgan Stanley, JP Morgan, and HSBC, visited Seoul last week to present their IPO proposals to Hyundai, according to the report.
With a market share of 15 per cent, Hyundai ranks as the second-largest carmaker in India. The company aims to secure funds that could value its Indian operations at up to $30 billion, surpassing more than half of its $42 billion market capitalisation in Seoul.
Established in India in 1996, Hyundai Motor India emerged as India's second-largest passenger vehicle seller last year, trailing behind Maruti Suzuki. Maruti Suzuki currently holds a valuation of Rs 33.4 trillion, while Tata Motors is valued at Rs 29.3 trillion. At the upper limit, Hyundai India's valuation could reach around Rs 23.3 trillion, outpacing Mahindra & Mahindra and Bajaj Auto.
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