Hyundai seeks $19 billion valuation for its mega India IPO, says report

Hyundai is expected to file updated documents with India's market regulator, the Securities and Exchange Board of India (Sebi), possibly as soon as Monday.

In Short

• Hyundai targets $19 billion valuation for India unit's upcoming IPO
• Hyundai's IPO could raise $3.3 billion with 17.5% stake sale
• Hyundai’s IPO may surpass LIC's $2.5 billion record from 2022

Hyundai Motor Co. is reportedly targeting a $19 billion valuation for the upcoming initial public offering (IPO) of its India unit, reported Bloomberg, quoting sources familiar with the matter. The South Korean automaker plans to offload a 17.5% stake in Hyundai Motor India Ltd. (HMIL), aiming to raise around $3.3 billion at this valuation, said the sources.

The IPO is expected to take place on October 22 in Mumbai, with several institutional investors, both local and foreign, showing interest.

The sources indicated that a mix of asset managers, insurers, pension funds, and sovereign wealth funds have already expressed preliminary interest in the offering.

Hyundai is expected to file updated documents with India's market regulator, the Securities and Exchange Board of India (Sebi), possibly as soon as Monday. However, details like the size, value, and timing of the IPO could still change as discussions are ongoing, the sources said.

Hyundai's IPO could potentially surpass the record set by Life Insurance Corporation of India (LIC) in 2022, which raised $2.5 billion.

If successful, this would also be one of Asia’s largest IPOs in recent years.

India’s equity market has been buoyed by strong economic growth, and investor appetite remains high.

According to data compiled by Bloomberg, Indian companies have already raised more than $9 billion through IPOs this year, doubling the amount raised during the same period in 2023.