Get All Access for $5/mo

Hyundai Motor Could be India's Biggest-Ever Initial Public Offering Worth $3 Billion: Report Hyundai Motor expects a potential $3 billion as an Initial Public Offering (IPO), surpassing the previous record of $2.46 billion raised by India's life insurance.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Source: Hyundai Motor India on X

Although Hyundai boasts a robust cash reserve at its parent company, the proposed India Initial Public Offering (IPO) aims to raise extra funds. Last week, Hyundai Motor's Indian division initiated the process for a landmark listing, potentially setting the stage for the country's largest IPO. These funds are expected to be allocated in part to boost shareholder value via increased dividends.

Hyundai, which holds the title of India's second-largest automaker after Maruti Suzuki, is charting a unique course for its IPO by not releasing new shares. Instead, the South Korean parent company will pare down its ownership, offering up to 17.5 per cent of its fully-owned Indian arm to retail and institutional investors through an "offer for sale" approach.

Talking to Reuters, analyst Song Sun-jae with Hana Securities said, "Investors are betting on Hyundai Motor's growth in the Indian market, one of Hyundai Motor's four biggest revenue generating markets along with the United States, South Korea and western Europe. With the India IPO, Hyundai Motor could better accelerate its plans for the India market, such as getting dibs on the electric vehicle (EV) market there ahead of their competitors by producing EVs in the country by adjusting its existing production site."

The preliminary prospectus submitted by Hyundai have no specifics of the IPO's pricing and the firm's estimated worth. However, Reuters report that Hyundai is targeting a fundraising haul of about $2.5-$3 billion, eyeing a valuation that could soar as high as $30 billion. Subsequently, the shares of Hyundai Motor in Seoul rose as much as 6.3 per cent on Monday to 285,000 won ($206.03), and closed up 3.9 per cent, a record high close which lifted its market capitalization to 58.3 trillion won.

Hyundai's IPO in India, one of the globe's most rapidly expanding automotive markets, marks a strategic move to bolster its market value. This decision aligns with the South Korean government's push for companies to seek foreign listings, aiming to elevate valuations and return more cash to shareholders. By choosing India, Hyundai not only underscores its commitment to scaling its operations in the country but also paves the way for other international firms. This precedent demonstrates how foreign companies can broaden their investor base and enhance valuations through global market listings.

News and Trends

"45% of All Ongoing Hydropower Projects in India are Ours": Patel Engineering

Patel Engineering reported a turnover of INR 4,400 crore in the last fiscal year, with a projected 10 per cent growth for the current year.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

News and Trends

Broadcom Stock Soars on AI Growth Outlook

Broadcom's next-generation AI chips, built with advanced 3-nanometer technology, are set to debut in the spring

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Science & Technology

5 Rule-Bending AI Hacks to Make Your Mornings More Productive and Profitable

By 2025, AI will transform productivity by streamlining workflows and cutting costs. Major companies like Microsoft, Google, and OpenAI are leading the way, advancing AI into "Phase 3," where tools act as digital assistants. Discover 5 AI hacks to boost efficiency and redefine your daily routine.

News and Trends

IIT Kanpur Launches Hackathon to Empower Startups in Cybersecurity

Startups will pitch their solutions to a panel of industry experts, with selected teams gaining access to incubation support at IIT Kanpur to help bring their ideas to market