Hyundai Global CEO to visit India within days to firm up company's IPO plan

Hyundai's global chief executive officer (CEO) Jaehoon Chang is set to visit India this month as the company gears up for its first-ever listing outside South Korea.

Sources say the global CEO is set to visit by the end of March to finally give a nod to Hyundai's plans to go public in India. The company is working towards filing its Draft Red Herring Prospectus (DRHP) papers with the Securities and Exchange Board of India (SEBI) by May and is hoping to go public in the third quarter of FY25.

Hyundai, which entered India 27 years ago, is among the top three car makers in India with a 15% market share. The company's line-up of sports utility vehicles (SUVs) including Tucson, Creta, Venue and Exter are among the highest-selling SUVs in the Indian market. Hyundai India is looking to raise over $3 billion at a valuation of $30 billion. This could well be the largest-ever IPO in India.

Chang's India visit comes just days after a high-level team from Hyundai's global headquarters in Seoul visited the country to review IPO plans. Sources say a team of lead managers and legal advisors have been appointed to drive the filing of the DRHP. Ahead of the IPO, the company is working on organisational restructuring in India, including adding new teams.

In response to a CNBC-TV18 detailed query to Hyundai's global teams, a company spokesperson said, "We continually evaluate various capital raising initiatives from time to time for our business in India, which may include external financing. We have no further comment at this stage but will make an official announcement if and when appropriate."

While Hyundai is yet to take a call on the percentage of stake to be diluted, the company may initially look at a low dilution of shares for retail investors, subject to SEBI approval. The fundraise will be used for driving the expansion of the company's manufacturing capacity, EV production and battery manufacturing and R&D.

Hyundai India has a capacity to manufacture 8.25 lakh units per year and wants to raise it to 10 lakh units per year by 2025. The company recently announced an acquisition of the General Motors Talegaon plant and has outlined an investment of ₹6,000 crore for this facility.

Hyundai also has massive plans for electric vehicles in India and has already announced a ₹26,000 crore investment in Tamil Nadu for an EV facility and battery manufacturing unit.