Hyundai Motors India reportedly targets November IPO, valuing company at $22-28 billion

Hyundai India IPO: Hyundai Motor India (HMIL) an Indian arm of South Korean-based Hyundai Motor Co. is mulling over listing its IPO on Indian bourses around Diwali in November this year, according to a report by the Economic Times.

Livemint tried reaching out to a company's spokesperson, who declined to comment.

Hyundai Motor India was incorporated on May 6, 1996, and with this development, the company is expected to reach the Indian stock market nearly after 28 years in India. HMIL was India's second-largest passenger vehicle seller last year, after Maruti Suzuki India.

Top global investment banks are vying for a potential Hyundai India IPO. Representatives from Goldman Sachs, Citi, Morgan Stanley, JP Morgan, Bank of America, HSBC, Deutsche Bank, and UBS pitched their expertise to Hyundai leadership last week in Seoul. Bankers valued the company at $22-28 billion, implying a potential market cap of ₹1.82-2.32 lakh crore. Hyundai is reportedly exploring a 15-20% dilution, aiming to raise $3.3-5.6 billion ( ₹27,390 crore to ₹46,480 crore), the ET report further added.

Hyundai Motor India is expecting to derive 65 per cent of its sales from sport utility vehicles (SUVs) in 2024, a segment in which customers prefer the higher fuel efficiency and power of a diesel engine in the larger segments, and petrol and CNG for better fuel economy at the lower end, Mint earlier reported.

“Diesel used to account for 60% of our sales at its peak, with petrol accounting for 40%, but now the trend has reversed with diesel accounting for 40%, which is good and in line with the industry direction. This year, it seems that 38-40% will be diesel, but because of our new turbo petrol engine, some diesel volumes may shift to that and diesel may account for 30-35% of our sales," Tarun Garg, COO, Hyundai Motor India, said, as quoted by Mint earlier in January 2024.

Meanwhile, the company signed a Memorandum of Understanding (MoU) with  Maharashtra's Industries Minister Uday Samant in Davos. Hyundai Motor India Ltd has committed to invest ₹6,000 crore in Maharashtra, in January 2024.