SEBI Greenlights Hyundai India's IPO Bid: Report

Hyundai Motor India has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO), according to a report by Reuters. The South Korean automaker is reportedly planning to raise between $2.5 billion and $3 billion through the IPO, valuing the company at up to $30 billion. The offering is expected to involve the sale of 142.2 million equity shares, representing a 17.5 per cent stake in the company, with a face value of ₹10 per share.

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If successful, this will mark the first IPO by a car manufacturer in India in two decades, following Maruti Suzuki’s listing in 2003. Hyundai India, a major player in the country's automotive market, is seeking to bolster its position against rising competition from domestic manufacturers like Tata Motors. The company is focused on expanding its SUV portfolio and is preparing to launch its first locally produced electric vehicle, likely the Creta EV, in early 2024. Hyundai also plans to introduce at least two new petrol-powered models by 2026.

India ranks as Hyundai's third-largest market globally, behind the U.S. and South Korea. The automaker has already invested $5 billion in its Indian operations and has committed an additional $4 billion over the next decade to further strengthen its presence in the country.

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

Major global investment banks, including JPMorgan, Citigroup, and HSBC, are advising Hyundai on the IPO. These banks are expected to earn around $40 million in advisory fees, which equates to approximately 1.3 per cent of the IPO size.