Tuesday, February 18, 2025

Hyundai Motors IPO: First car making company after Maruti Suzuki to go public, plans 25000 Cr IPO

Hyundai Motor of South Korea plans to sell up to 17.5% of its stake in its Indian subsidiary through an initial public offering (IPO). The Hyundai motors IPO will be the biggest in India. The carmaker intends to file the draft papers, aiming to raise between $2.5 billion and $3 billion through the share sale.

Hyundai, the second-biggest carmaker in India after Maruti Suzuki and is widely popular and loved by consumers. This IPO is noteworthy as it would be the first by an automaker in India in over 20 years, with the last one being Maruti Suzuki in 2003. India is a significant market for Hyundai, ranking third in revenue generation after the US and South Korea. The company is looking to take advantage of the growing market potential in India by going public.

Hyundai Motor India Limited (HMIL) began its operations in 1996 and now offers 13 different models across various segments.

What makes Hyundai Motors IPO unique?

Hyundai Motors IPO
Hyundai Motors IPO

There are many reasons why the IPO from Hyundai Motors is special.

  • Its a huge IPO, if reports are to be believed, about 3 Billion $ or 25,000 Crore IPO.
  • HMIL is expected to off load about 17% of its shares, giving a valuation of about 18 Billion $
  • Hyundai is beleived to use the money to expand its foot prints in India
  • Hyundai is expected to use the money for expasion into the Hybrid space where Maruti Suzuki, in support with Toyota have taken the lead.
  • They will likely use the money to expand the plant acquired from General Motors in Talegaon
  • Hyundai will likely use the money into the development of Electric vehicles
  • Its also expected to expand the electric cell manufacturing in India
  • Its the first IPO after Maruti Suzuki in Indian auto space

Its expected to open in third quarter of 2024.

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