Hyundai explores $3 billion IPO for India unit at up to $30 billion valuation, sources say


  • Hyundai in talks with banks including JP Morgan, Citi -sources
  • At $3 bln, Hyundai IPO would be India’s biggest stock offering
  • Co doubling down on India after scaling back in China, Russia exit
  • Hyundai faces growing competition from local rival Tata Motors
  • Hyundai to invest $4 bln in India in EVs, new factory

MUMBAI, (Reuters) – Hyundai Motor (005380.KS), opens new tab is planning to list its Indian unit to raise at least $3 billion in what would be the country’s biggest IPO, two people said, as the South Korean firm doubles down in the key growth market ahead of a widely expected entry by Tesla.

Hyundai Motor India is in early talks for an initial public offering (IPO) and has held discussions with several banks, the two people, who have been briefed on the matter, said on condition of anonymity as the discussions are not yet public.

The fund raising by Hyundai, the second-biggest automaker in India with a 15% market share, would value its Indian operation at up to $30 billion, which is more than half its market capitalisation of $42 billion in Seoul. Shares of the company soared 5% on Monday, to their highest in nearly three years.

A valuation of up to $30 billion would put Hyundai’s India unit behind rivals like Tata Motors at $41.43 billion and Maruti Suzuki India at $40.11 billion.

A spokesperson at Hyundai’s India unit declined to comment.

The company is exploring “value unlocking for its India business” through the IPO, the two people said.

“They want to make use of India’s IPO boom. India’s capital markets have hardly stood out like this before compared to other countries,” one of the two people added.

Boosted by billions of dollars of domestic and foreign money, India’s $4 trillion stock market has emerged as a fast-growing alternative to China, recently overtaking Hong Kong as the fourth-largest in the world.

India’s benchmark Nifty 50 index rose 20% in 2023 and has extended its record run into 2024.

IPOs in India boomed in the second half of 2023 and bankers expect this to continue in 2024 amid hopes of policy stability. SoftBank-backed Ola Electric and food delivery firm Swiggy, among others, are expected to list this year.

In 2023, 239 companies raised $6.78 billion via IPOs in India, according to LSEG data.

India’s biggest IPO was the 2022 listing of its largest insurer, Life Insurance Corporation, in which it raised up to $2.7 billion.

For its India IPO, Hyundai has held talks with investment banks JP Morgan, Morgan Stanley, Citi (C.N) and Bank of America though no formal appointments have been made, the two people said.

Bank of America declined to comment, while the other three did not respond to a request for comment.

India’s Economic Times newspaper first reported Hyundai’s plans for an India IPO.


Hyundai, India’s second-largest car maker by sales, is now doubling down in the South Asian nation and the United States after scaling back its production in China after years of losses there and exiting Russia after selling its two Russian plants.

It entered India more than two decades ago and is the only foreign player to have become dominant alongside market leader Maruti Suzuki, while companies like Ford Motor and General Motors have folded their India business.

Hyundai’s share of the Indian market reached a peak of nearly 20% mainly due to its wide portfolio of small cars and a grasp of what buyers want, but it is seeing growing competition from domestic players like Tata Motors which has launched a slew of new SUVs and electric cars.

Hyundai now has about a 15% share of the Indian car market where it sold 567,000 vehicles in the last fiscal year.

Analysts noted that Hyundai’s India unit IPO talks come amid Tesla’s plan to enter India and if Hyundai’s unit manages to go public in the country, it might help Hyundai better compete with Tesla in the Indian EV market in the future.

Hyundai has said it plans to invest close to $4 billion in the Indian market in parts over the next decade to launch new EVs, charging stations and a battery pack assembly unit. Part of the money is being invested in buying a former GM plant to help Hyundai expand its production.

Hyundai currently manufactures cars at its plant in the southern Indian city of Chennai which is dubbed the Detroit of Asia.
($1 = 83.0210 Indian rupees)

Reporting by Sriram Mani in Mumbai; Additional reporting by Aditi Shah and Tanvi Mehta in New Delhi, Nandan Mandayam in Bengaluru, Heekyong Yang in Seoul, Scott Murdoch in Sydney, and Swati Bhat Shetye in Mumbai; Editing by Christian Schmollinger, Michael Perry and Himani Sarkar