Hyundai Motor Likely To Launch India's Largest-Ever IPO This Diwali: Report

Hyundai Motor India IPO: Automaker anticipated to divest 15-20 per cent of its stake, aiming to raise $3.3-5.6 billion (equivalent to Rs 27,390 to Rs 46,480 crore)

Hyundai Motor India disclosed its acquisition of General Motors India's Talegaon plant in Maharashtra last month.

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Hyundai Motor India Ltd (HMIL), the Indian subsidiary of South Korea's Hyundai Motor Co, is gearing up for what could become the nation's largest initial public offering (IPO), as reported by The Economic Times (ET) on Monday. The IPO is slated to be launched around Diwali, spanning between September and November this year.

According to ET's report, financial institutions have estimated HMIL's value to range between $22-28 billion. The automaker is anticipated to divest 15-20 per cent of its stake, aiming to raise $3.3-5.6 billion (equivalent to Rs 27,390 to Rs 46,480 crore). This forthcoming IPO is poised to surpass the previous record set by LIC, which raised Rs 21,000 crore.

Leading global investment banks, including Goldman Sachs, Morgan Stanley, JP Morgan, and HSBC, visited Seoul last week to present their IPO proposals to Hyundai, as per ET's findings.

Established in India in 1996, HMIL 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.

Citing a source the ET report revealed that momentum for the IPO is expected to escalate post the conclusion of the elections.

In a recent development, HMIL disclosed its acquisition of General Motors India's Talegaon plant in Maharashtra last month. The company plans to invest Rs 6,000 crore in the state to revive the facility, which boasts an annual production capacity of 130,000 units, slated to recommence operations in 2025.

Hyundai's lineup in India comprises popular models such as Creta, Verna, i20, i10, and Elantra, among others.