Hyundai officially files for ~$3 billion IPO in India

On June 16, 2024, Hyundai Motor Company confirmed that it officially filed for an initial pubic offering (IPO) in India estimated to raise nearly $3 billion. 

The South Korean automaker has already submitted the “Draft Red Herring Prospectus (DRHP) to India securities market. The DRHP is a preliminary document for Hyundai’s IPO in India. It is a crucial step in the IPO. India’s Securities and Exchange Board is expected to reject or approve the IPO in the next three to six months. 

Hyundai Motor Company has wholly owned the Hyundai Motor India Limited subsidiary since the beginning of its operations in 1996. The company intends to publicly sell portions of its existing shares in the Indian subsidiary. It will not issue new shares for the IPO. 

The Asian car manufacturer plans to sell 142 million shares out of its 812 million shares of the Hyundai Motor India Limited subsidiary. It hopes to raise up to $3 billion in the IPO and reach a valuation of around $30 billion for its Indian subsidiary. 

Hyundai’s IPO in India will likely help it raise funds to expand operations in the country. India is the third-largest car market in the world. Hyundai Motor Group Chairman Chung Eui-sun has stated that the automaker is focused on growing in the Indian car market. Hyundai is already the second-best-selling automaker in India after Maruti Suzuki.

Hyundai has an annual production capacity in India of 1 million units. It invested $5 billion in two plants in Chennai, which produce 850,000 cars a year. Last year, it purchased a factory in Talegaon from General Motors, which can produce 130,000 vehicles annually. 

Hyundai plans to invest more in India. It announced plans to invest $4 billion in India over the next 10 years to launch new electric vehicles, charging stations, and battery packs. 

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