Hyundai plans IPO to raise $3 billion in India

Hyundai India’s valuation could exceed that of Mahindra & Mahindra, Adani Power and Bajaj Auto.

Hyundai Motor India is reportedly planning to launch an IPO around Diwali. It could become the largest-ever initial public offering, surpassing the LIC issue size.

According to media reports, top global investment banks are vying for a potential Hyundai India IPO. It is said that representatives from Goldman Sachs, Citi, Morgan Stanley, JP Morgan, Bank of America, HSBC, Deutsche Bank and USB, recently made IPO pitches to the leadership of Hyundai in Seoul.

Hyundai Motor India was incorporated in 1996. It became the second-largest carmaker in India last year. The company is estimated to be valued at $22-28 billion and is exploring a 15-20% dilution to raise $3.3-5.6 billion. If priced at the upper band of $28 billion, Hyundai India’s valuation will exceed that of Mahindra & Mahindra, Adani Power and Bajaj Auto.

There has been no official word from Hyundai yet. The company has neither denied nor confirmed these reports.

Source: Economic Times