In a significant move nearly three decades after making its debut in India, Hyundai is reportedly contemplating a massive initial public offering (IPO) in the country. If the plans materialize, this IPO could potentially become India’s largest, surpassing the record set by LIC with an issue size of ₹21,000 crore, as reported by The Economic Times.
The IPO comes amid a flurry of activity in Asia Pacific’s equity markets, with India emerging as a hotspot for listings. Market analysts anticipate India to maintain its position as one of the region’s most active markets throughout the year. According to the ET report, multiple investment banks were recently in Seoul to finalize the listing plan for Hyundai, the second-largest passenger vehicle seller in India after Maruti Suzuki.
Bankers involved in the process have reportedly valued Hyundai at an impressive $22-28 billion. The company, already listed in South Korea with a market cap of $39 billion, is eyeing a Diwali listing in India, signaling a significant move as part of South Korea’s ‘value-up’ program.
Taking inspiration from Japan’s corporate reforms, which fueled a stock rally, Korean financial regulators are exploring measures to publicly highlight companies that fail to adopt improvement measures. This includes considering an indicator to measure companies’ reform efforts.
Hyundai has set ambitious targets for 2024, aiming for a 4% to 5% growth in sales. The company plans a total investment of 12.4 trillion won this year, with 5.6 trillion won allocated for capital expenditure and 4.9 trillion won for research and development.
As Hyundai prepares for this potential milestone IPO in India, market watchers are keenly observing the development, anticipating a transformative impact on India’s equity landscape.
