Hyundai Motor India Receives SEBI Nod for $3 Billion IPO, Set to be India's Largest Hyundai has maintained a consistent market share between 15 per cent and 17 per cent since 2008, reinforcing its position as the second-largest automaker in India.
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In a landmark move, the Securities and Exchange Board of India (SEBI) has approved Hyundai Motor India's initial public offering (IPO), setting the stage for what could be the largest public listing in the country's history. The South Korean automaker's Indian arm is expected to raise a massive $3 billion through this IPO, targeting a valuation between $18 billion and $20 billion. The IPO, anticipated to launch in October, will break records in the Indian financial market, according to early reports by Moneycontrol.
While specifics regarding the pricing and precise timeline are still under wraps, financial analysts are already weighing in. Brokerage firm Nomura is particularly bullish on Hyundai, suggesting that the company deserves a valuation premium over its main competitor, Maruti Suzuki India, which currently dominates the Indian automobile market.
Maruti Suzuki, with a market capitalization of $48 billion, holds a significant 41 per cent market share, according to the Society of Indian Automobile Manufacturers (SIAM). However, its leadership position is showing signs of vulnerability. Rising competition, coupled with a gradual decline in market share, is providing Hyundai an opportunity to strengthen its foothold. In contrast, Hyundai has maintained a consistent market share between 15 per cent and 17 per cent since 2008, reinforcing its position as the second-largest automaker in India.
In 2023, Hyundai reached a new milestone with its highest-ever domestic sales, selling 6,02,000 units—a 9 per cent increase year-over-year (YoY). The strong demand for its compact and mid-size SUVs, such as the Creta, Venue and Exter, has been a key driver of this growth, according to Nomura.
Looking ahead, Hyundai is planning to ride this momentum into the future. Nomura forecasts significant growth for the company in 2025 and beyond. As Hyundai Motor India gears up for its historic IPO, all eyes will be on its ability to leverage its recent successes and solidify its position in the highly competitive Indian auto market.
