Hyundai mulls listing India arm; touted to be India's largest IPO at USD 22-28 billion: Report

Hyundai Motor Company is mulling listing its local unit Hyundai Motor India, sources informed the Economic Times, in what is slated to be India's biggest listing if it goes through. 

Persons in the know informed the Economic Times that Deutsche Bank, HSBC, Bank of America, Morgan Stanley, JP Morgan, Citi, and UBS were in South Korea to present pitches and valued India's second largest PV seller last year at USD 22-28 billion. The sources added that Hyundai is assessing 15-20% dilution of stake to secure USD 3.3- 5.6 billion (Rs 27,390 crore to Rs 46,480 crore). 

The newspaper could not elicit a response from Hyundai's global head of communications in Seoul. 

At the upper band of USD 28 billion (Rs 23.2 lakh crore), Honda Motor India will be valued more than Bajaj Auto, Adani Power, and Mahindra & Mahindra, Economic Times noted. LIC held the distinction of the largest listing in the country with an issue size of Rs 21,000 crore in 2022. 

Analysts that look at Hyundai Motor India state that taking it public would be a part of South Korea's 'value up programme'. This essentially is targeted at bolstering the valuation of underperforming stocks and reducing the 'Korea discount' in financial markets. 

The plan foresees a Diwali listing, between September and November, sources informed the Economic Times. These are initial talks and the final details will be fleshed out in further discussions, the report noted. 

External factors such as the robustness of the Indian capital markets and macro-economic factors will have to be taken into consideration, the report stated. 

"Work has begun at headquarters. This is arguably the tentpole event for them in India, noted a person in the know. 

India is slated to emerge as the biggest market for the firm in the near future, Unsoo Kim, the MD and chief executive had noted in November, stating that the company expected nearly a fifth of its global sales to come from India in the next couple of years, Economic Times reported. 

Turnover crossed the Rs 60,000 crore milestone in FY23, up 27% from FY22, the Economic Times noted, further adding that profit zoomed 62% to Rs 4,653 crore, making it the highest among non-listed auto companies in the country. 

At this World Economic Forum in Davos, Hyundai Motor India Limited signed an MoU with the Maharashtra govt for an investment of Rs 7,000 crore for the GM plant it procured last year in Talegaon. This is over and above the Rs 20,000 crore announced in August, mainly focused on electrification, post Hyundai Motor Group's Chairman Euisun Chung's visit. The company has said it will launch five EV models in India by the end of the decade.