Hyundai Motor India unit picks HSBC, JP Morgan, Citi as advisors to launch mega IPO

Hyundai Motor has selected JP Morgan, Citi, and HSBC as advisors for the proposed initial public offering (IPO) of its India unit, aiming to raise between $3 billion to $3.5 billion, according to sources familiar with the matter. The company is reportedly planning to file draft papers for the IPO by June 2024, potentially making it the largest IPO ever on the Indian stock exchanges. If successful, it would surpass the previous record set by LIC's $2.7-billion listing in 2022.

While the deal is currently being advised by these three investment banks, additional banks may be brought in at a later stage if necessary. Hyundai's India operations are significant, representing around 13 percent of the company's global sales in 2023. Notably, Hyundai's India unit achieved its highest-ever domestic sales in 2023, surpassing six lakh units. On the export front, the unit's performance also saw a 10 percent increase year-on-year.

Responding to media reports, Hyundai stated that while it continually evaluates various activities, including listing overseas subsidiaries to enhance corporate value, nothing has been confirmed regarding the IPO plans for its India operations.

The move comes amid a growing trend of global brands considering listings in India, attributed to the market's maturation and strong domestic financing capability, as highlighted by Udhay Furtado, Co-Head of ECM at Citi, in an earlier interview.

In addition to Hyundai's IPO plans, another significant IPO in the Indian auto sector is anticipated from Ola Electric, backed by Softbank and Temasek, marking the first public listing attempt by an Indian electric vehicle firm.