Hyundai Motor Preps for IPO: Set to Make History as First Indian Auto Listing Since Maruti Suzuki

Hyundai Motor’s Indian division is preparing to file the necessary documents for an Initial Public Offering (IPO) with the Securities and Exchange Board of India (Sebi) within the next two weeks, insiders reveal. This move could make Hyundai the first carmaker to go public in India since Maruti Suzuki’s IPO in 2003.

IPO Filing

Once the draft red herring prospectus (DRHP) is submitted, Hyundai Motor India plans to start investor meetings in India and abroad from next month, said a source involved in the discussions. Approval from Sebi is expected in 60-90 days, which could see the IPO launched in September or October.

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Hyundai has enlisted Citibank, Morgan Stanley, Kotak Mahindra, HSBC, and JPMorgan to manage the IPO. The company did not respond to queries from the Economic Times.

Hyundai is looking to capitalise on a strong Indian stock market, which has delivered an average annual return of 14% over the past decade, making it one of the best-performing markets globally. According to a report from February, Hyundai aims to value its Indian subsidiary between $22 billion and $28 billion and plans to sell 15-20% of it through the IPO. The offering will be an offer for sale (OFS) by the parent company in Korea.

Impact on the Indian Automobile Sector

A senior fund manager from a leading domestic fund suggested that if Hyundai achieves its desired valuation, it could positively impact the valuation of the entire Indian automobile sector, particularly benefiting Maruti Suzuki, and could increase the attractiveness of the domestic auto market.

An analyst from a domestic brokerage noted that Hyundai’s main competitor in the Indian stock market is Maruti Suzuki. Hyundai’s valuation is expected to be higher due to its successful focus on the SUV segment. Hyundai has been quicker than Maruti in launching new models and incorporating advanced technologies and features, helping it secure a premium market position.

Hyundai’s SUV sales have been strong, accounting for 67% of its total sales in May, according to Tarun Garg, the company’s Chief Operating Officer. Hyundai’s SUV lineup includes the Exter, Venue, Creta, Alcazar, Tucson, and Ioniq 5.