Hyundai Targets Record $19 Billion Valuation in India’s Biggest IPO Ever – Could Surpass LIC’s Historic Listing

Hyundai Motor India is aiming for a $19 billion valuation as it prepares for India’s biggest-ever IPO, according to a report by Bloomberg. The company’s parent, Hyundai Motor Company from South Korea, plans to sell a 17.5% stake in its India business, potentially raising about $3.3 billion at this valuation.

The details of the offering, such as the size, value, and timing, are still under discussion and could change, sources familiar with the matter said. The listing is expected to take place in Mumbai on October 22.

Several institutional investors, including foreign and local asset managers, insurers, pension funds, and sovereign wealth funds, have shown interest in buying shares in the IPO. Hyundai may update the necessary documents with India’s stock market regulator as early as Monday.

A Hyundai representative directed requests for comment to its India unit, while a spokesperson for Hyundai Motor India declined to comment.

This IPO, if it proceeds as planned, would surpass the record set by Life Insurance Corporation of India (LIC) in 2022, which raised ₹20,600 crore ($2.5 billion). It would also be among the largest IPOs in Asia in recent years.

So far in 2024, Indian stock listings have raised more than $9 billion, which is nearly double the amount raised in the same period last year, as international and local investors continue to support the country’s economic growth.

Analysts have suggested that Hyundai Motor India could deserve a higher valuation compared to Maruti Suzuki India Ltd., the country’s largest carmaker, due to Maruti’s declining market share. Hyundai’s valuation has been set between $18-20 billion in its draft prospectus, while Maruti Suzuki, with 41% of the market share, is valued at $48 billion. Hyundai, the second-largest carmaker in India, has maintained a stable market share of 15-17% since 2008.