Hyundai Motor puts IPO plans for Indian stock market listing in gear; details here

| TOI Business Desk | TIMESOFINDIA.COM | Jun 11, 2024, 10:33 IST

Hyundai Motor's Indian subsidiary is gearing up to file a draft r... Read More

Hyundai Motor's Indian unit is gearing up to file a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) within the next two weeks. This move marks the beginning of their journey toward an initial public offering (IPO), according to sources familiar with the development.

Should this plan come to fruition, it would be the first IPO by an automaker in India in over 20 years since Maruti Suzuki went public in 2003.

According to an ET report, following the DRHP submission, Hyundai Motor India's management is expected to kick off investor roadshows in both domestic and international markets from next month. This information was shared by an investment banker who wished to remain anonymous due to the confidential nature of the discussions.

Sebi is anticipated to grant its approval within a span of 60-90 days post-DRHP filing. This timeline indicates that Hyundai Motor India's IPO could potentially debut in the market by September or October.

Hyundai IPO Plans

The company has engaged several prominent investment banks, including Citibank, Morgan Stanley, Kotak Mahindra, HSBC, and JPMorgan, to steer the IPO process.

The automaker aims to leverage the robust performance of the Indian equities market, which has delivered an impressive annual return of 14% over the past decade, placing it among the top five globally best-performing markets.

In February, the financial daily had reported that Hyundai is eyeing a valuation of $22-28 billion for its Indian division. The company plans to sell a 15-20% stake through the IPO, which will be an offer for sale by the Korean parent company.

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A senior fund manager at a leading domestic fund noted that if Hyundai achieves its target valuation, it could lead to a rerating of the Indian automobile sector, particularly benefiting Maruti Suzuki, and deepen the domestic auto market.

Currently, Maruti Suzuki stands as Hyundai's closest competitor among listed Indian firms. An analyst at a domestic brokerage said that Hyundai's valuation is expected to be significantly higher than Maruti's, and for a valid reason.

"Over the last few years, Hyundai has really capitalized the growing preference for SUVs seen in the Indian market," the analyst said.

The analyst also said that Hyundai has been more proactive in launching new models, integrating the latest technologies, and introducing vehicle features compared to Maruti. This has allowed Hyundai to command better pricing power and strengthen its premium market position.

Tarun Garg, Hyundai's chief operating officer, said during a recent monthly sales call that SUVs made up a record 67% of the company's total sales in May. Hyundai’s SUV lineup includes models such as the Exter, Venue, Creta, Alcazar, Tucson, and Ioniq 5.

Top 10 Stock Markets In The World: India Among Top 5!

Top 10 Stock Markets in the World 2024: What is the largest stock market in the world? Did you know that the market capitalization of the world’s largest stock market is more than 11 times of the Indian stock market? What is the largest stock market in Asia and where does India rank? Stock markets are broadly seen as an indicator of an economy’s strength. We take a look at the world’s top 10 stock markets in terms of combined market capitalization of its stock exchanges as per data shared by Anand Rathi Shares and Stock Brokers: (AI image)

The US, with major stock exchanges like the New York Stock Exchange and Nasdaq Stock Market, holds the title for the world’s largest stock market with a whopping market capitalization of $55.58877 trillion! Its market cap has gone up from $50.68125 trillion in December 2023. (AI image)

China, with its major stock exchange the Shanghai Stock Exchange, has the world’s second largest stock market as of May 27 with a total market capitalization of $9.17833 trillion. However it has declined by 3.77% from the levels of $9.53800 trillion in December 2023. (AI image)

Japan, with its major stock exchange as The Tokyo Stock Exchange, has a total stock market capitalization of $6.33139 trillion. It is the third largest stock market in the world and has risen in terms of market cap from $6.23549 trillion in December 2023. (AI image)

Hong Kong is the world’s fourth largest stock market and its major stock exchange is The Hong Kong Stock Exchange. As of May 2024, Hong Kong’s combined market capitalization is $5.26510 trillion, up from $4.72699 trillion in December 2023. (AI image)

India, with Bombay Stock Exchange and National Stock Exchange as its major stock exchanges, has moved up to the fifth spot in the world’s top 10 largest stock markets list. Its market capitalization currently stands at $4.79636 million. According to some estimates, it recently crossed the $5 trillion mark in May 2024. This is a big rise from $4.20198 trillion in December 2023. (AI image)

France has the world’s sixth largest stock market with a market capitalization of $3.40393 trillion as of May 2024. In December 2023, the market capitalization of France, with its major stock exchange Euronext Paris, stood at $3.27411 trillion. (AI image)

The United Kingdom, with its major stock exchange as The London Stock Exchange, ranks seventh in the list of largest stock markets. It has a combined market capitalization of $3.26656 trillion. This is an increase from $3.08886 trillion in December 2023. (AI image)

Canada’s stock market, standing at the eight rank with its major stock exchange as the Toronto Stock Exchange, has a total market capitalization of $3.02663 trillion. Its market cap has risen from $2.90455 trillion in December 2023. (AI image)

Saudi Arabia ranks 9th in the list of the world’s largest stock markets by market capitalization. Its major stock exchange is the Saudi Exchange. The market cap of Saudi Arabia’s stock market currently stands at $2.83320 trillion, down from $3.00110 trillion in December 2023. (AI image)

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