Hyundai Motor India has received approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO), according to two people familiar with the matter, Reuters reported. The South Korean automaker is expected to raise $3 billion, valuing the company at about $20 billion, sources told Reuters earlier.
After Maruti Suzuki’s IPO in 2003, it would be the first car company to go public in India in two decades.
Efforts to reach Hyundai India for comment outside normal business hours were unsuccessful.
The automaker is trying to regain market share from local rivals, including Tata Motors, by expanding its SUV lineup. Additionally, Hyundai plans to introduce its first locally produced electric car early next year, with two gasoline-powered models expected by 2026, according to three sources familiar with the company’s plans.
India is Hyundai’s third largest revenue market in the world, behind the US and South Korea. The company has already invested US$5 billion in the country and has committed another US$4 billion over the next decade.
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Another most anticipated IPO
In a separate development, SEBI has cleared the IPO of SoftBank-backed food delivery company Swiggy. Swiggy is reportedly targeting a valuation of around $15 billion and is expected to raise between $1 billion and $1.2 billion, according to multiple sources.
Meanwhile, NTPC Green Energy Ltd., a subsidiary of India’s state-owned power producer NTPC Ltd., plans to raise up to 100 billion rupees ($1.2 billion) through an IPO, underscoring the growing volume of deals in the Indian market. According to a draft prospectus published on Wednesday, the proceeds will be used to invest in the subsidiary and repay loans.
India’s IPO market has seen a surge in activity, with bourse proceeds reaching $8.8 billion so far in 2024, surpassing the totals of the previous two years, according to Bloomberg data. The country’s fast-growing economy has made it an attractive option for investors amid challenges in other markets such as China.
