Hyundai Motor announced in a regulatory filing on Tuesday its plan to sell 142 million shares of Hyundai Motor India in an upcoming initial public offering (IPO). The shares represent a part of its holdings, with the sale aimed at facilitating the IPO process.
Post-sale, Hyundai Motor will retain a substantial majority, holding 670 million shares, which equals an 82.5% stake in its Indian subsidiary. This move indicates Hyundai’s strategy to still maintain significant control while allowing public investment.
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The company has not yet established an indicative price range for the IPO shares. This decision is pending, suggesting a strategic consideration of market conditions and investment interest levels before finalising the pricing.
Hyundai aims to raise $3 billion through the IPO, targeting a valuation of approximately $20 billion. This ambitious valuation reflects Hyundai’s confidence in its business prospects and market position within the Indian automotive sector.
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This IPO marks a significant milestone, as Hyundai Motor India would be the first car manufacturer to go public in India since Maruti Suzuki in 2003. This event positions Hyundai as a major player looking to expand its footprint in the Indian market.