[Featured Stock] Hyundai Motor Surges on India IPO Expectations

[Image source=Yonhap News]

Hyundai Motor is showing strength following news that its Indian subsidiary will proceed with an initial public offering (IPO) locally. The stock price reached a new high, climbing up to 285,000 KRW during trading.

As of 2:49 PM on the 17th, Hyundai Motor is trading at 280,000 KRW, up 4.48% (12,000 KRW) compared to the previous trading day.

Foreign investors and institutions are jointly driving the stock price up with net purchases of 15.918 billion KRW and 11.571 billion KRW respectively.

Hyundai Motor announced that it has submitted the Draft Red Herring Prospectus (DRHP), a preliminary IPO document, to the Securities and Exchange Board of India (SEBI), and that the final decision on the listing will depend on market conditions and the results of the pre-IPO demand forecast.

Jaeeil Lee, a researcher at Eugene Investment & Securities, stated, "The Talagaon new plant is scheduled to begin operations next year, and with the increasing proportion of sports utility vehicles (SUVs), the average selling price (ASP) and profitability in the Indian market are rapidly growing each year. Considering the launch of the Creta EV next year, Hyundai Motor is likely to emerge as a major player in the Indian electric vehicle market, which means the company's value after the IPO will exceed current estimates."