Hyundai says India IPO plans are not confirmed yet

South Korean automotive manufacturer Hyundai Motor Co on February 8 denied reports of considering an initial public offering (IPO) of its India unit.

“This announcement is an explanation announcement (unconfirmed) regarding the Hyundai Motor India IPO and the competition among five global IBs, as reported in Seoul Economic Daily and other sources on February 7, 2024,” Hyundai said in a statement to Korea's stock exchange.

Hyundai said that as a global company, it is constantly reviewing various activities, including listing overseas subsidiaries, to increase corporate value, but nothing has been confirmed to date. “We will re-announce the above contents once they are confirmed or within one month,” it said.

The statement comes amid multiple reports suggesting that Hyundai Motor Co. was considering an IPO for its India unit. Bloomberg, citing sources suggested, it could raise about $2.5 billion potentially making it one of the biggest listings ever in the South Asian country.

People cited by Bloomberg had said that Hyundai has held talks with international banks about the possible IPO and that the firm may reach out to domestic advisers for pitches soon. A listing may value the Indian unit at $25 billion, the people said. Considerations are at a very early stage and a share sale may not go ahead, the people said.

As per the report if the firm goes ahead with the IPO, Hyundai would use the cash raised to expand operations.

India is a key market that accounted for 13% of Hyundai’s global sales last year and the South Korean firm is the country’s second-biggest carmaker.