India's largest IPO by Hyundai's subsidiary seeks to launch its stock market trading in Mumbai and has filed papers with the regulator for this. If this takes effect, then the South Korean parent will sell down as much as 17.5% of its stake— a move that is unprecedented since Maruti Suzuki went public back in 2003, making Hyundai the first car manufacturer to do so. This comes at a time when Indian stock markets are near record highs.
India holds a significant position for Hyundai where the organization has setup two manufacturing plants and put in $5 billion. The company has promised another $4 billion over the next ten years. Being the third largest revenue producer for Hyundai worldwide after China and the United States, India significantly influences the company's strategy. Although details regarding price or valuation were not explicitly outlined in the IPO prospectus, sources indicate that Hyundai is striving to raise an amount between $2.5 and $3 billion— with an aspiration of reaching a valuation as high as $30 billion. Substantive information: India very big market for Hyundai, 2 manufacturing plants operating there plus $5 billion investment with additional $4 billion pledged over next decade; India third largest revenue generator for Hyundai globally, after China and US; IPO did not disclose specific pricing or valuation details but aiming to raise between $2.5 and $3 billion at up to a $30 billion valuation.


The IPO will not involve the issuance of new shares but will see the South Korean parent company sell part of its stake through an "offer for sale" mechanism to retail and other investors. This strategy is expected to position Hyundai Motor India more competitively against rivals like Maruti Suzuki and Tata Motors by facilitating easier future fundraising without relying heavily on its Korean parent company. Hyundai believes the listing will boost its visibility and brand image in India, providing liquidity and a public market for its shares.
Hyundai's future plans in India focus on "premiumisation," expanding its portfolio of high-end cars, increasing its electric vehicle (EV) market share, and enhancing its network of charging stations, where it currently lags behind Tata Motors. Additionally, Hyundai aims to reinforce its role as an export hub by shipping more vehicles internationally. The company has not specified a timeline for the listing, but typically, India's Securities and Exchange Board of India (SEBI) takes three to six months to process IPO applications.
India's road infrastructure is expanding under Prime Minister Narendra Modi's leadership and this has promoted local manufacturing, with a special focus on EVs. Hyundai's cost-effective models — including the Santro and the Creta SUV — have dominated the Indian market for nearly three decades now. As part of its future plans, the company intends to introduce new electric vehicles, establish charging stations, and develop a battery pack assembly unit.


The South Korean parent company intends to sell up to 142 million of its 812 million shares in the IPO, though the final percentage might be lower. This IPO aims to unlock value for Hyundai's Indian operations and help reduce the valuation gap compared to its global and Asian competitors. While Indian stock indices have seen significant growth, doubling between 2019 and 2023, Seoul’s KOSPI index has only risen by 30% in the same period. Hyundai is being advised on the IPO by major investment banks including Citi, JP Morgan, HSBC, Morgan Stanley, and India’s Kotak.