Hyundai Motor Co. Launches a New Chapter with IPO
Hyundai Motor Co. to sell 17.5% shares on Mumbai exchange, potentially the country’s largest offering.
The parent company would sell up to 17.5% its shares.The India unit applied for regulatory approval on Saturday.
Hyundai’s IPO will be India’s first automaker listing in 20 years, since Maruti Suzuki’s 2003 IPO.
Hyundai considers India, where it has two production facilities and has spent $5 billion, as a key growth area.
Over the next decade, Hyundai plans a $4 billion investment in its third-largest market after the US and China.
Hyundai aims to raise $2.5-$3 billion at a valuation of up to $30 billion.
Strategic Shifts and Market Positioning
In the IPO, Hyundai’s parent will sell stock to investors, but the company will not issue new shares.
No longer relying on its Korean parent, the listing strengthens Hyundai India against rivals like Maruti and Tata.
In the draft prospectus it submitted on Saturday, Hyundai stated that it anticipates the listing of the equity shares in India “will enhance our visibility and brand image” and “provide liquidity and a public market” for the shares.
India’s market regulator usually takes 3-6 months for IPO decisions, but the listing timetable was not specified.
To catch up with Tata Motors in EV market share, the business prioritizes “premiumization,” focusing on selling pricier cars while installing more charging stations.
In addition, Hyundai India stated that it wishes to “strengthen” its status as an export hub by shipping more automobiles.
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