Hyundai Motor India has reportedly initiated confidential discussions with major global banks regarding a potential $3 billion plus Initial Public Offering (IPO) slated as the country’s largest ever. The local arm of Korean automaker Hyundai has engaged firms like JP Morgan and Bank of America as it explores stock listing options with the regulatory filing likely in mid-2024.
The move demonstrates India’s surging capital market attraction amid relative stagnancy across other large Asian economies as a robust secondary avenue for global corporates to raise growth financing. Talks envision Hyundai India’s valuation crossing $30 billion — over half parent’s market cap.
EV Competition, Growth Prospects in Focus
With arch rival Tata Motors recently hitting valuation records on swelling EV interest, analysts feel the timing aligns with Hyundai’s India EV focus too as it commits nearly $4 billion over this decade on new cleaner models, allied infrastructure and supply chain localization.
IPO proceeds could aid planned acquisition of GM’s scrapped production facility also expanding output capacities when market leader Maruti faces margin pressures from competitor launches. With Tesla contemplating 2021 India entry deferred multiple times, the public float when materialized intends consolidating Hyundai’s leadership versus fellow global aspirants.
