Hyundai India IPO: Company picks up JP Morgan, Citi, and HSBC as advisors, says report
Mumbai: Hyundai Motor, the South Korean automotive company, has proposed an initial public offering (IPO) for its India division. It has selected JP Morgan, Citi, and HSBC as advisors for the potential IPO, aiming to raise an estimated $3 billion to $3.5 billion, Moneycontrol reported citing various anonymous industry insiders.
The report said the company may add more investment bankers subsequently for the IPO.
Hyundai is India's second-largest seller of passenger vehicles in 2023 after Maruti Suzuki India.
The Economic Times first reported the listing plans of Hyundai's India operations on February 5.
In response to media reports regarding its India listing intentions, Hyundai Motor Co. released an official statement to the Korean Stock Exchange on February 7.
The statement clarified that, as a global entity, Hyundai consistently evaluates different initiatives, including potential listings of overseas subsidiaries, with the aim of enhancing corporate value. However, the statement emphasized that no concrete decisions have been made thus far.
The draft papers of this mammoth deal in progress are anticipated by June 2024 and if the listing plans materialise, it would be the biggest-ever IPO on the Indian exchanges, the report said.
As of now, the Life Insurance Corporation's (LIC) $2.7-billion listing in 2022 is India's biggest IPO.
In 2023, India emerged as a pivotal market for Hyundai, contributing approximately 13 percent to the company's global sales. Among the successful Hyundai models in India are the i20, Verna, Kreta, Aura, and Tucson.
The Indian unit achieved a historic milestone in 2023 by recording its highest-ever domestic sales, surpassing the six-lakh mark.
The unit sold a total of 602,111 units, marking a significant nine percent increase compared to the previous year's sales of 552,511 units.
Furthermore, on the export front, the performance of Hyundai's Indian arm exhibited a commendable growth of 10 percent.
It shipped a total of 163,675 units in 2023, compared to 148,300 units in the previous year, showcasing robust performance in international markets as well.
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