Hyundai Motor is setting its sights on the Indian market with plans to launch an Initial Public Offering (IPO) for its Indian unit, media outlet Reuters reported. The South Korean automaker could potentially raise at least $3 billion in what could be India’s largest IPO to date.
The discussions are in their infancy and there is no official confirmation from the automobile company. Still, the report noted that Hyundai is talks with several banks to navigate its IPO and that the proposed fundraising effort could value Hyundai’s Indian unit at an impressive $30 billion. This valuation is a significant marker, representing over half of Hyundai’s global market capitalization, which stood at $42 billion.
The news of Hyundai’s IPO comes at a time when India’s stock market is going through an incredible rise, drawing both foreign and domestic capital, and it has surpassed Hong Kong to become the fourth largest in the world. Hyundai has a fantastic chance because of the country’s capital market fundamentals, which are demonstrated by the record-breaking performance of the Nifty 50 index.
Hyundai aims to strengthen its position in a competitive market, thus the company’s decision to go public in India is significant. The carmaker, which has effectively made a name for itself in India, intends to use the IPO to support its growth and innovation, especially in the field of electric vehicles (EVs). This bold IPO initiative not only reflects Hyundai’s long-term commitment to India but also sets the stage for an intensified competition in the evolving Indian automotive landscape, especially with the anticipated entry of Tesla.
Just recently, Hyundai launched its refreshed Creta, prices of which starts starting at Rs 11 lakh for the entry-level petrol-manual variant and goes up to Rs 20 lakh for the top-spec diesel and turbo-petrol automatics. The facelift features a completely redesigned front and rear. The larger grille, adorned with intricate parametric details as termed by Hyundai, is paired with a new lighting arrangement, among other changes.