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.