India’s Big IPO Coming! Hyundai Teams Up with Kotak and MS to Raise $2.5 to $3 Billion
Hyundai, a big car company from South Korea, is getting ready to sell some of its shares in India. They’ve picked Kotak Mahindra Capital and Morgan Stanley to help them. They want to raise between $2.5 billion to $3 billion which could make it the biggest IPO ever in India. Right now the record is held by another big company LIC which raised $2.7 billion.
The plan is to submit the DHRP to Sebi, the market regulator by the end of June or July. If this IPO goes well, it might encourage other big companies to do the same.
They think Hyundai’s Indian arm is worth around $20 billion. In addition, they said the size of the IPO and valuation haven’t been finalized yet and both could vary depending on the conditions of the market and the strategy of the company. Will get full clarity once the filing of draft papers is done.
As previously reported, the valuation could be even higher, between $22 billion to $30 billion.
Hyundai Motor India is the second biggest car company in India after Maruti Suzuki.
People involved in the IPO say that selling some of the shares is a good way to make money from Hyundai investments around the world.
In the last financial year, Hyundai Motor India made a lot of money, more than any other car company in India that’s not already listed on the stock market. These are big plans, “but we’ll have to wait and see what happens.”
