Hyundai Motor Company is set to launch the largest IPO in the history of the Indian stock market, aiming to secure long-term investment momentum and increase expectations for shareholder returns [Investment 360].

Listed on the Mumbai Stock Exchange on the 22nd (local time).
“Currently at a similar level to India’s PER of 26 times.”
India’s Sensex rises 12.29%… Higher than China
Positive corporate value… Quick capital procurement possible.
Anticipation for shareholder returns with India IPO,

Hyundai Chennai Factory [Provided by Hyundai Motor],
,
, ‘[Herald Economy = Reporter Yoo Dong-hyun] Hyundai Motor India’s subsidiary (HMI) is entering the Indian stock market at an unprecedented scale. The funds raised through the initial public offering (IPO) will be invested in production facilities to target the local market share leader position. The securities industry anticipates long-term investment momentum as stocks are expected to rise due to shareholder return expectations.’,
,
, ‘According to the financial investment industry, Hyundai Motor India’s subsidiary starts trading on the Bombay Stock Exchange (BSE) on the 22nd (local time). The offer price has been set at the upper end of the proposed range, at 1,960 rupees (approximately 32,000 KRW). The enterprise value of the Indian subsidiary, converted from the offer price, is $19 billion (about 26 trillion KRW), surpassing half of Hyundai Motor’s domestic market capitalization (approximately 49.63 trillion KRW, as of the 21st).’,
,
, ‘Song Sun-jae, a researcher at Hana Securities, evaluated that “HMI’s expected annual net income for 2024 is about 1 trillion KRW, and the market capitalization at the time of listing is at a valuation level of 26 times the price-earnings ratio and 13 times the price-to-book ratio,” adding that it is similar to India’s current stock market price-earnings ratio of 26 times.’,
,
, ‘17.5% (1.422 billion shares) of the Indian subsidiary’s shares will be sold as part of existing shareholder sales. This means that existing shareholders will sell a portion of their shares without issuing new stock. After the existing shares are sold, Hyundai Motor’s head office’s stake in the Indian subsidiary will be reduced from 100% to 82.5%.’,
,
, ‘The scale of the funds raised through the listing is $3.3 billion (about 4.52 trillion KRW). This is the largest in Indian stock market history and the second-largest globally. Hyundai plans to disclose specific uses of the funds raised post-IPO and is expected to enhance local plant production capacities and advance into the electric vehicle market. India is the world’s third-largest automobile market (with a scale of 4.13 million units). Although it has a population of 1.4 billion, the largest in the world, only 8.5% of households have cars. Last year’s new car sales in India increased by 18.5% compared to five years ago, while major car market scale such as the USA, China, and Japan decreased during the same period. It is recognized as a key emerging market in the automobile industry.’,
,
, ‘The Indian stock market is the fourth-largest in the world (market capitalization of $4.33 trillion as of January this year). For the first time in December of last year, the market cap exceeded $4 trillion, almost doubling from four years ago when it was around the $2 trillion range. As the world’s largest population nation, consumption is rising, and it boasts a wealth of young labor.’,
,
, ‘India’s Sensex and Nifty 50 indices posted year-on-year growth rates of 12.29% and 13.98% respectively as of the previous day. This is higher than China’s stock market, which rebounded from government-led stimulus measures. China’s Shanghai Composite Index and Shenzhen Composite Index increased by 10.32% and 11.38% respectively. Given the bullish market achieving a record high in India, the Hyundai Motor Indian subsidiary’s IPO is considered “a good timing.” IPOs are advantageous when the stock market is growing, trading is increasing, and there is abundant liquid capital.’,
,
, ‘There is speculation that Hyundai Motor will enhance its corporate value through its Indian subsidiary’s listing. This is because swift capital procurement becomes possible through subsequent capital increases and direct investments by Hyundai Motor. Given India’s automotive growth potential, this is seen as a preemptive move to secure investment resources at the right time. Yumin Ki, a researcher at Sang Sang In Securities, said, “An important investment base event is being materialized from a long-term perspective.”’,
,
, ‘Expectations also rise in terms of shareholder returns. Hyundai Motor is expected to announce the results of India’s IPO and its shareholder return plans during its third-quarter earnings announcement. In August, the company revealed a plan to repurchase 4 trillion KRW worth of treasury stock over the next three years. Kang Seong-jin, a researcher at KB Securities, stated, “Hyundai Motor’s investment point lies in long-term profit outlook and shareholder returns,” adding, “Although retail sales are decreasing and inventory replenishment is wrapping up, operational profit loss is anticipated to gradually peak out, but the overall size of shareholder returns is expected to continue to increase due to strengthened shareholder return policies.”’,
,
, “The Indian subsidiary ranks second in the local market share (602,111 units, 14.6%), following Maruti Suzuki, an India-Japan joint venture (1.7 million units last year, 41%). Hyundai Motor, which set annual sales records last year, plans to sell 605,000 units this year. From next year, Hyundai aims to achieve an annual production system of 1 million units in India. Once the Pune plant begins operations in the second half of next year, Hyundai will establish a 1 million units production system centered on the Chennai plant (824,000 units) and the Pune plant. It is also accelerating efforts to capture the electric vehicle market. The first locally produced electric SUV model, ‘Creta EV,’ will be launched early next year in India. Including Creta EV, five electric vehicle models will be introduced to the Indian market by 2030.”,
,
,

,