Hyundai Motor India to Launch $3 Billion IPO: First in Two Decades

Hyundai Motor India has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO), as reported by Reuters. According to insiders, the South Korean automaker is expected to raise around $3 billion, with the company's valuation estimated at $20 billion.

This marks a significant milestone, as Hyundai will be the first car manufacturer to go public in India in 20 years, following Maruti Suzuki's IPO in 2003. Hyundai has yet to comment on this development.

Hyundai’s Strategy to Boost Market Share

Hyundai is working on regaining its market share in India, where it faces strong competition from domestic manufacturers like Tata Motors. As part of its strategy, the company is expanding its SUV lineup and plans to introduce its first locally-produced electric vehicle early next year. In addition, Hyundai aims to launch two gasoline-powered models by 2026, according to sources familiar with the company's plans.

India's Importance in Hyundai’s Global Market

India is Hyundai’s third-largest market, behind the United States and South Korea. The company has already invested $5 billion in the country and is committed to investing another $4 billion over the next decade. This demonstrates Hyundai's long-term focus on expanding its presence in the Indian market.

Surge in India’s IPO Market

India's IPO market has been witnessing significant growth in 2024, with total listing proceeds reaching $8.8 billion so far. This surpasses the figures for the previous two years, reflecting the growing interest from investors, especially as other markets like China face challenges. The trend towards larger IPOs is evident, with companies like Hyundai, Swiggy, and NTPC Green Energy leading the way with billion-dollar offerings.

Other Upcoming IPOs in India

Swiggy’s $1 Billion IPO

In a related development, SEBI has also given the green light to Swiggy, the food delivery giant backed by SoftBank, for its IPO. Swiggy is targeting a valuation of around $15 billion and aims to raise between $1 billion and $1.2 billion, according to sources.

NTPC Green Energy’s IPO Plans

NTPC Green Energy Ltd., a subsidiary of India’s state-run power producer NTPC Ltd., is also gearing up for a major IPO, planning to raise up to 100 billion rupees ($1.2 billion). The company plans to use the funds to invest in its subsidiary and repay loans. This marks another large-scale offering in India’s growing IPO market.

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With Hyundai Motor India and other major companies gearing up for billion-dollar IPOs, India's stock market is seeing a surge in activity. This reflects the country's robust economy and growing appeal to global investors.