Hyundai, the South Korean auto company, is reportedly considering an initial public offering (IPO) in India, which could become the country’s largest IPO if it materializes.
India’s equity market has been active in hosting IPOs this year, and Hyundai’s potential listing is seen as a significant move.
LIC currently holds the record for the largest IPO in India with an issue size of ₹21,000 crore.
Several investment banks were reportedly in Seoul last week to finalize the listing plan for Hyundai, India’s second-largest passenger vehicle seller.
The valuation of Hyundai for the IPO is estimated to be between $22-28 billion, with the company eyeing a Diwali listing.
The listing in India is part of South Korea’s ‘value-up’ program, aligning with the country’s efforts to encourage corporate reforms.
Korean financial regulators are considering measures, including publicly naming and shaming companies that fail to adopt improvement measures.
Hyundai has set a growth target of 4-5% for sales in 2024 and plans a total investment of 12.4 trillion won, including capital expenditure and research and development.
The move reflects the trend of increased IPO activity in Asia Pacific, with India expected to remain one of the region’s most active markets this year.
