Mega IPO May Value Hyundai At $19 Billion
For the 1st time, South Korean major will list its subsidiary in overseas market; The company exists in India for over 26 years, enjoys number two position domestic automobile mkt
Mega IPO May Value Hyundai At $19 Billion
The whole aim is to really become the most trusted brand of India. This IPO gives us an opportunity to really pursue some global standards in terms of excellence, in terms of operations, in terms of governance. All these things are really working in favour of an IPO -- Tarun Garg, COO, Hyundai Motor India Ltd
New Delhi: The upcoming Rs27,870 crore initial public offering (IPO) of the Indian arm of South Korean automaker Hyundai, the first such instance of the company listing its subsidiary in an overseas market, is aimed to further Indianise operations, a senior company official said on Friday.
Hyundai Motor India Ltd’s IPO, the largest in the country’s history, will open for public subscription on October 15 and conclude on October 17. Anchor investors will bid on October 14. Based on IPO price band, its valuation is expected to be $19 billion.
“We have been in India now for more than 26 years. We have a very high market share. We are at number two position in India in the passenger vehicle space. We have got so much love and affection from the people of India. So, we believe this is the right time to take one step forward and even further Indianise our operations,” said Tarun Garg, COO, Hyundai Motor India Ltd (HMIL).
He further said: “The whole aim is to really become the most trusted brand of India.” Garg was responding to a query behind reasons for the company choosing India for a public listing and not other countries.
HMIL has set a price band of Rs1,865 to Rs1,960 per share for the offering, valuing the automaker at Rs1.6 lakh crore ($19 billion). At the upper end of the price band, the IPO size has been pegged at Rs27,870 crore. The company’s IPO will surpass the Rs21,000 crore offering by Life Insurance Corporation of India (LIC) in May 2022.
“If you see India as a country, it is really doing very well. The GDP is very good, much higher than the global GDP growth rates,” he said, adding in the last three to four years, India has emerged as a very good destination for all the major players and the pace of growth even further accelerated. Also, with the company’s growth story set to further accelerate in India, Garg said it is an opportune time to go public.
