Hyundai Motor India Confirms IPO

In a landmark move, South Korean automaker Hyundai Motor has confirmed its plans to launch an initial public offering (IPO) for its Indian unit, setting the stage for potentially the largest IPO in India's history. The IPO, which is anticipated to raise between $2.5 billion and $3 billion, from a 17.5 per cent stake, or 142.2 million equity shares of face value of ₹10 each, could value Hyundai India at up to $30 billion. The confirmation comes as Hyundai seeks to capitalise on a surge in equity deals in the Indian market.

Also Read: Hyundai Plans IPO in India; Aims to Raise $3 billion: Report

According to media reports, the banks advising Hyundai on this significant transaction stand to make as much as $40 million in fees. This fee structure, set at 1.3 per cent of the IPO size, will be divided among several major investment banks, including JPMorgan, Citigroup, and HSBC. If the deal reaches the higher end of its valuation, this payday would rank as the second highest ever for investment banks working on an IPO in India, following Paytm’s 2021 IPO which yielded $44 million for its advisers.

For investors and market participants, Hyundai’s IPO represents a unique opportunity to participate in the growth story of one of the world's leading automotive brands within one of the fastest-growing markets. As the details of the IPO unfold, all eyes will be on Hyundai and its advisors, awaiting the next steps in this venture.