Hyundai may beat Korea discount with IPO in India
₹1.5 trillion, the asking P-E is 25.6," said Aditya Kondawar, partner, Complete Circle Capital, a wealth management firm. “The IPO will be critical for both investors and the company, since India is Hyundai’s third-largest revenue generator after the US and South Korea," Kondawar added. Hyundai Motor’s IPO, the largest in India after Life Insurance Corporation of India’s ₹20,000 crore-plus share sale in 2022, will be the country’s first automobile IPO in two decades.
It is expected to improve investor perception of the parent and the visibility of Hyundai's Indian operations, allowing it to return greater cash to shareholders. HMC is the sole seller, offloading over 142 million equity shares of face value of ₹10. All the proceeds will go to the Korean parent.
The offer document says Hyundai is looking to list to ‘enhance visibility and brand image’ and ‘provide liquidity and a public market for equity shares in India’. “Listing its India subsidiary indicates a significant potential for value realization from the world’s third-largest passenger vehicle market, which has not yet been fully reflected in Hyundai’s overall market valuation," an industry executive said. “The India listing is projected to allow a re-evaluation of the (company’s) remaining operations and India’s weight in the business, potentially increasing Hyundai’s overall market capitalization," the executive said on the condition of anonymity.
The carmaker aims to list on Indian exchanges ahead of the festive season. In a March report, South Korean broking firm Meritz Securities said Hyundai’s corporate value enhancement plan will greatly determine the direction of its stock price movement in the first half of the year. “Hyundai Motor is expected to present
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