2024-06-13 11:40:29
New Delhi: There’s excellent news for these investing within the IPO market. The Indian unit of South Korean auto firm Hyundai Motor is getting ready to carry an IPO. In line with sources, the corporate could file a Draft Pink Herring Prospectus (DRHP) with market regulator SEBI within the subsequent two weeks. With this, the method of bringing an IPO will start. If this IPO is profitable, it is going to be the primary IPO of an auto firm in India in additional than twenty years. Earlier, the nation’s largest automobile producer Maruti Suzuki had introduced an IPO within the yr 2003. An funding banker mentioned that after submitting the DRHP, the administration of Hyundai Motor India can begin investor highway reveals in India and overseas from subsequent month. After submitting the DRHP, it’s anticipated to get approval from SEBI inside 60-90 days. On this means, Hyundai Motor India’s IPO could probably come available in the market in September or October. The corporate has employed funding bankers Citibank, Morgan Stanley, Kotak Mahindra, HSBC and JP Morgan to handle this IPO. Nonetheless, Hyundai Motor India didn’t reply to ET’s questions on this. Via this IPO, Hyundai is attempting to benefit from the increase within the Indian inventory market. Within the final decade, the Indian market has given an annual return of 14%. It’s among the many high 5 performing markets globally.
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Auto sector advantages
ET had reported in February that Hyundai is focusing on a valuation of $22-28 billion for its Indian unit and is contemplating promoting 15-20% stake by way of an IPO. This might be a very on the market supply by the Korean guardian firm. A senior fund supervisor of a high home fund mentioned that if Hyundai manages to realize this valuation, it might result in a rerating of the Indian car sector. This may particularly profit Maruti Suzuki. The home auto market can even profit. An analyst at a home brokerage agency mentioned that there will not be many listed corporations in India. In such a scenario, Hyundai’s closest competitor amongst home listed corporations is Maruti Suzuki. Hyundai’s valuation is more likely to be a lot increased than Maruti.
Analysts mentioned that the demand for SUVs has elevated within the Indian market in the previous couple of years and Hyundai has taken benefit of this chance. In comparison with Maruti, Hyundai has been rather more energetic in introducing new fashions, newest know-how and extra options. This places the corporate ready to get higher valuation and strengthen its premium place. Hyundai Chief Working Officer Tarun Garg mentioned in a month-to-month gross sales name with the media earlier this month that SUVs accounted for a file 67% of Hyundai’s complete gross sales in Could. The corporate’s SUV vary consists of Exter, Venue, Creta, Alcazar, Tucson and Ioniq 5.