Nearly two years after LIC launched India¡¯s largest IPO ever, it seems that the record is likely to be broken soon. And it is expected to be done by South Korea's Hyundai Motor Co, which is evaluating a plan to list in India amid the country¡¯s IPO boom. According to people with knowledge of the matter, Hyundai India¡¯s IPO could be the country's largest initial public offering.
Prominent international investment banks such as Citi, Goldman Sachs, HSBC, Deutsche Bank, JP Morgan, Bank of America, UBS, and HSBC were reportedly in Seoul last week to present IPO plan to the Hyundai executives. According to bankers, the company is worth $22-28 billion. Hyundai is considering dilution of between 15 and 20% in order to raise $3.3-5.6 billion (?27,390 crore to ?46,480 crore), as per ET report.
The source cited above stated that the?IPO plan calls for a Diwali listing to occur between September and November?of this year. But these are just discussions at this stage; final details will be decided upon after more discussion. It will also be influenced by a number of outside variables, such as the health of the Indian financial markets and different macroeconomic variables.
In 2022, LIC had broken the record of India¡¯s largest IPO when it launched its IPO with an issue size of Rs 21,000 crore.?
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Hyundai Motor Co. (HMC) has a market capitalization of $39 billion and is listed in South Korea. Reports following Hyundai Motor India (HMIL) indicated that listing the Indian subsidiary would be a component of South Korea's 'value-up' initiative, which aims to reduce the so-called 'Korea discount' in the financial markets and improve the valuation of underperforming stocks.
As per the sources, at the head office, the IPO work has started. Hyundai aims to strengthen its ties in this market, which is strategically significant. In India, this could be considered their main event. The Lok Sabha elections this summer are anticipated to provide additional impetus for the movement.
If Hyundai manages to launch India's biggest IPO at the expected valuation and size, it is expected to become India's most valuable automaker, ahead of the current biggest car makers in India-Maruti Suzuki and Tata Motors. Other auto sector giants in India, as per their market cap in our stock market, are:
1.Tata Motors-Rs 3.44 lakh crore
2.Maruti Suzuki-Rs 3.33 lakh crore
3.Bajaj Auto-Rs 2.21 lakh crore
4.Mahindra & Mahindra-Rs 2.01 lakh crore
5.Eicher Motors-Rs 1.06 lakh crore?
6.TVS Motor-Rs 97,700 crore
7.Hero Motocorp- Rs 94,700 crore
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