Hyundai Motor India IPO Underwriters Selected as Citi and JP Morgan

Plan to Raise $2.5~3 Billion
Regulatory Documents to Be Submitted to India Around May~June

Hyundai Motor Company is expected to select Citigroup and JP Morgan Chase as lead underwriters for its Indian subsidiary's initial public offering (IPO). Major foreign media outlets, including Bloomberg, reported on the 9th (local time) that the company plans to raise approximately $2.5 billion to $3 billion (about 3.33 trillion to 3.99 trillion KRW).

According to sources, Hyundai Motor is also in discussions with other banks besides Citigroup and JP Morgan. Therefore, there is a possibility that the lead underwriters may change. Since the final decision on the timing of the IPO and the number of shares has not been made, the public offering could be postponed. Sources explained that if Hyundai Motor goes public, it will become one of the largest listed companies on the Indian stock market.

[Image source=Reuters Yonhap News]

Additionally, major foreign media cited multiple sources stating that Hyundai Motor plans to submit regulatory documents to Indian authorities around May to June this year for the IPO. They also added that besides Citigroup and JP Morgan, Indian investment banks may be included as IPO underwriters.

Bloomberg reported on the 5th that Hyundai Motor plans to use the funds raised through the IPO for operational expansion and other purposes. India accounted for about 13% of Hyundai Motor's global sales last year.

Bloomberg and other major foreign media estimate that if Hyundai Motor's Indian subsidiary goes public, its corporate value will reach $25 billion to $30 billion (about 33.29 trillion to 39.95 trillion KRW).

Regarding this, Hyundai Motor issued a clarification disclosure on the 7th, stating, "As a global company, we continuously review various activities, including listing overseas subsidiaries, to enhance corporate value, but nothing has been finalized yet," and added, "We will re-disclose at the time of finalization or within one month."

Last year, the Indian IPO market experienced a record boom. According to Bloomberg, India raised about $27 billion through IPOs and follow-on share sales last year, surpassing Hong Kong for the first time in 30 years. The SENSEX index, the benchmark index of the Indian stock market, rose 19% last year and has continuously increased over the past eight years, rapidly emerging as a new market replacing China. The Indian financial sector expects a positive atmosphere to continue this year as political stability is maintained following the general elections in April to May.