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Hyundai IPO : Hyundai Motor India Limited, the country's most successful foreign automaker, has received approval from the Securities and Exchange Board of India (SEBI) for its IPO. Its IPO will be the largest public issue ever. Hyundai, India's second-largest carmaker after Maruti Suzuki, can raise at least $3 billion (about Rs 25,000 crore) through the IPO. This will make the company's valuation around $18 billion or about Rs 1.5 lakh crore. So far, LIC's Rs 21,008 crore IPO launched in May 2022 has been India's largest IPO. Hyundai's IPO will see the sale of 142 million shares or 17.5% stake by its South Korean parent Hyundai Motor Company.
India is the third-largest market for Hyundai.
According to an ET report, Hyundai has got approval for IPO. Currently, there is no update on its listing. Hyundai will allow investors to invest in a highly profitable automobile company. The performance of auto companies in the stock markets has already been very good. India is the third largest earning market for Hyundai at the global level after America and South Korea.
It has already invested $5 billion in the country, and plans to invest another $4 billion over the next decade.
When did you enter India?
Hyundai entered India in 1996 and its entry into the country was a big challenge for automakers like Ford and General Motors. It gave tough competition to these companies with affordable hatchbacks like the Santro. As customer needs changed over time, Hyundai launched its first made-in-India SUV in 2015.
The mid-size Creta was an instant success, becoming Hyundai's top-grossing car. Hyundai now has eight SUVs in its 13-car portfolio, but its share of India's total SUV sales of 2.5 million units last fiscal fell to 19% from 24% three years ago.
Still on top for SUV revenue
According to an ET Prime report, Hyundai is getting 66% of its domestic business revenue from SUVs, which is higher than the industry average. The increasing share of these higher-priced, more profitable SUVs has increased the company's operational profit margin from an average of 7% in FY16-23 to 9.5% in FY24 (nine months).
Disclaimer: Information about an upcoming IPO is provided here and not a bit of investment advice. There is risk in the equity market, so invest at your own risk. Do take expert advice before investing.
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