Hyundai to Initiate India IPO with Draft Filing Today

Mumbai: Hyundai Motor India Pvt. Ltd. is set to file draft papers for its initial public offering today, according to people in the know, setting the stage for the first carmaker to list in India in more than two decades.

On offer in the Hyundai India IPO are 142 million shares equivalent to 17.5% stake, the people said on the condition of anonymity as the terms are confidential. Citi, HSBC, Kotak Securities Ltd. and Morgan Stanley are the book-running lead managers for the IPO, which can potentially be India's largest since LIC's $2.5-billion offering a few years ago. The roadshows to gauge investor interest are likely to begin in August.

When contacted, a Hyundai India spokesperson refused to comment on the matter.
A Hyundai India IPO is noteworthy, for that would make the South Korean automaker the first carmaker to list in India since Maruti Udyog Ltd. in 2003. A successful listing will also peg Hyundai India's market cap at half of its parent's $47-billion valuation in Seoul.

Hyundai Motor Co. Ltd., which entered the subcontinent with its best-selling Santro in 1998, is the second-largest carmaker with a 15% market share. It's the only foreign player surviving in a hyper-competitive market dominated by Maruti Suzuki India Ltd. American carmakers Ford Motor Co. and General Motors Co. bowed out after years of attempting to carve out a piece of the world's third-largest auto market.

Nearly one in four Hyundai cars are sold in India now. In fact, in the month of April, Hyundai sold nearly as many cars in India as in its home country of South Korea. In South Korea, the carmaker sold 63,733 units-a decline of 4.4% year-on-year. In India, sales volume rose 10% year-on-year to 63,701 units-50,201 units locally and 13,500 exports.

Hyundai India has been consistently clocking 60,000 units per month for some time now, though the momentum is now ebbing.

In May 2024, domestic sales of Hyundai India rose 1.13% year-on-year to 49,151 units, as against 48,601 units in the year-ago period. Exports rose 31% to 14,000 units due to a low base. Total sales surged 6.63% year-on-year to 63,551 units versus 59,601 units during the same month last year.

"We have maintained a healthy total sales volume in May 2024, despite a week-long routine bi-annual maintenance shutdown at our Sriperumbudur factory," the COO said. "SUVs continue to be a growth driver, accounting for more than 67% of domestic sales last month. Our rural penetration stood at a healthy 20.1% in May."