Highlights

  • Hyundai may list Hyundai Motors India Ltd, this Diwali
  • Hyundai's IPO could be the country's largest IPO
  • Hyundai exploring a 15-20% dilution to raise $3.3-5.6 billion

Latest news

Thomas Tuchel to depart as Bayern Munich head coach at the end of season

Thomas Tuchel to depart as Bayern Munich head coach at the end of season

ICC Rankings: Yashasvi Jaiswal leaps into Top 20 after historic double hundred against England

ICC Rankings: Yashasvi Jaiswal leaps into Top 20 after historic double hundred against England

PM Modi to visit Uttar Pradesh on Feb 23

PM Modi to visit Uttar Pradesh on Feb 23

Haryana Assembly passes unanimous resolution hailing construction of Ram temple in Ayodhya

Haryana Assembly passes unanimous resolution hailing construction of Ram temple in Ayodhya

Watch: Aditya Roy Kapur-Ananya Panday reach Goa, Ananya blushes as paps call them ‘hit jodi’

Watch: Aditya Roy Kapur-Ananya Panday reach Goa, Ananya blushes as paps call them ‘hit jodi’

9 killed, several injured in Bihar as truck and tempo collide

9 killed, several injured in Bihar as truck and tempo collide

Haryana: farmer reportedly dead in 'police action' at Khanauri border, cops say rumour

Haryana: farmer reportedly dead in 'police action' at Khanauri border, cops say rumour

Muhammad Hafeez highlights fitness neglect under Babar Azam's leadership before ODI World Cup

Muhammad Hafeez highlights fitness neglect under Babar Azam's leadership before ODI World Cup

India's largest IPO in the making as Hyundai aims to make Diwali debut on Dalal Street: Report

Hyundai is planning to list Hyundai Motors India Ltd this Diwali by diluting 15-20% to raise $3.3-5.6 billion while the banks value it at $22-28 billion

India's largest IPO in the making as Hyundai aims to make Diwali debut on Dalal Street: Report

IPO 2024: South Korea's Hyundai is planning to list its local unit to take advantage of India's IPO boom, reported The Economic Times. As per the report, this could be the country's largest initial public offering if it comes to fruition.

The plan envisages a Diwali listing between September and November this year. The Economic Times report further mentioned that the listing will depend on several external factors, including the vigour of the Indian capital markets and various macroeconomic factors.

IPO Plan

Global investment banks including Goldman Sachs, Citi, Morgan Stanley, JP Morgan, Bank of America, HSBC, Deutsche Bank and UBS were reportedly in Seoul last week to make IPO pitches to the Hyundai leadership. While the bankers valued the company at $22-28 billion, Hyundai is exploring a 15-20% dilution to raise $3.3-5.6 billion. Hyundai Motor Co (HMC) is listed in South Korea at a market capitalisation of $39 billion.

Also Read: Tata Motors stock surges 8% on stellar Q3 results, hits all time high

At $28 billion, Hero Motors India Limited will be valued at 48 times FY23 earnings, while at the lower end of the band at $22 billion, it would be 38.4 times.

The Economic Times quoted a person with the knowledge of the matter and said that the work has begun at the headquarters and Hyundai wants to deepen the relationship with India, seeing it as a strategic market.

As per BSE data, only Maruti Suzuki and Tata Motors are valued higher at current market prices at Rs 33.4 lakh crore and Rs 29.3 lakh crore respectively.

Hyundai's P/E Ratio

South Korea's automakers relatively have lesser P/E ratio compared to their Japanese and US peers. While South Korea's automakers are trading at a low price-to-earnings (P/E) ratio of 4.1-4.6, their Japanes rivals have a P/E ratio of 7.3 and 5.4 for those in the US.

Hence listing their subsidiaries in growth markets such as India could potentially trade at superior P/E multiples than their parents. For Example, Maruti Suzuki trades at 23 times its projected FY25 earnings, while parent Suzuki Motor Corp is at eight times.

ADVERTISEMENT

Up Next

India's largest IPO in the making as Hyundai aims to make Diwali debut on Dalal Street: Report

India's largest IPO in the making as Hyundai aims to make Diwali debut on Dalal Street: Report

Nokia overhauls India operations, set to cut around 250 jobs

Nokia overhauls India operations, set to cut around 250 jobs

Paytm in talks with HDFC Bank, Axis Bank and SBI for UPI payment: Report

Paytm in talks with HDFC Bank, Axis Bank and SBI for UPI payment: Report

Mukesh Ambani-backed Hanooman AI model set to launch in March

Mukesh Ambani-backed Hanooman AI model set to launch in March

No plan to cut down on hiring but want work-from-home to end, says TCS Chief

No plan to cut down on hiring but want work-from-home to end, says TCS Chief

Fin Min review report: India's economic outlook bright; inflation to fall further

Fin Min review report: India's economic outlook bright; inflation to fall further

More videos

Zee Entertainment denies report of $240 million accounting discrepancy

Zee Entertainment denies report of $240 million accounting discrepancy

Amazon set to launch 'Bazaar' for unbranded fashion and lifestyle products

Amazon set to launch 'Bazaar' for unbranded fashion and lifestyle products

Gold, Silver Price Today February 21, 2024: Check Latest Rates in Mumbai, Delhi, Chennai, Bengaluru

Gold, Silver Price Today February 21, 2024: Check Latest Rates in Mumbai, Delhi, Chennai, Bengaluru

Zee Entertainment denies the $10-billion merger revival talks with Sony

Zee Entertainment denies the $10-billion merger revival talks with Sony

Nasscom Report: India's AI market set to reach to $17 billion by 2027

Nasscom Report: India's AI market set to reach to $17 billion by 2027

Neuralink's first human patient able to control computer mouse with thoughts; says Musk

Neuralink's first human patient able to control computer mouse with thoughts; says Musk

Nifty 50 surges above 22,000 mark, hits all time high

Nifty 50 surges above 22,000 mark, hits all time high

Woman's Swiggy account hacked, loses ₹97,000

Woman's Swiggy account hacked, loses ₹97,000

Radisson to build second hotel in Ayodhya in partnership with EaseMyTrip and Jeewani Group

Radisson to build second hotel in Ayodhya in partnership with EaseMyTrip and Jeewani Group

Onion prices may go up in March as exporters warn of major shortage in supply

Onion prices may go up in March as exporters warn of major shortage in supply

Editorji Technologies Pvt. Ltd. © 2022 All Rights Reserved.