Hyundai Motor is reportedly considering an initial public offering (IPO) for its Indian subsidiary, Hyundai Motor India, aiming to raise a minimum of $3 billion (₹24,920 crore).
What Happened: The IPO, potentially one of India’s largest, is in early-stage discussions, with Hyundai exploring the possibility of unlocking value for its India business, Moneycontrol reported, citing two sources.
The automaker is reportedly eyeing a valuation between $25 billion and $30 billion (₹2.07 lakh crore-₹2.5 lakh crore), surpassing half of its current market capitalization in Seoul, which stands at $42 billion (₹34.9 lakh crore).
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Hyundai is reportedly seeking to capitalise on the country’s robust capital markets, which are at all-time highs. Hyundai’s move aligns with its strategic focus on India and the US, following reduced operations in China and an exit from Russia, sources told the business publication.
Why It Matters: As the second-largest carmaker in India, Hyundai faces increased competition but remains a dominant player with a 15% market share. The IPO discussions come at a strategic juncture, coinciding with Tesla’s likely entry into the Indian market and could give the former an edge in the evolving electric vehicle sector.
Hyundai, having invested close to $4 billion (₹33 lakh crore) in the Indian market, plans to introduce new electric vehicles, charging stations and a battery pack assembly unit. The company’s commitment to India includes acquiring a former General Motors plant to bolster production capacity.
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