Upcoming IPOs: Hyundai Motor India has secured approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO), according to two insiders familiar with the matter, Reuters reported. The South Korean automaker is expected to raise $3 billion, with a company valuation of approximately $20 billion, sources previously told Reuters.
This would mark the first car manufacturer to go public in India in two decades, following Maruti Suzuki's IPO in 2003.
Efforts to reach Hyundai India for comment outside of regular business hours were unsuccessful.
The automaker is striving to reclaim market share from local competitors inlcuding Tata Motors, by enhancing its SUV lineup. Additionally, Hyundai plans to introduce its first locally-produced electric vehicle early next year, with two gasoline-powered models expected to launch by 2026, according to three sources familiar with the company's plans, the report added.
India is Hyundai’s third-largest revenue market globally, trailing only the U.S. and South Korea. The company has already invested $5 billion in the country and has committed an additional $4 billion over the next decade.
In a separate development, SEBI approved the IPO of Swiggy, a SoftBank-backed food delivery company. Swiggy is reportedly targeting a valuation of around $15 billion and is expected to raise between $1 billion and $1.2 billion, according to multiple sources.
Meanwhile, NTPC Green Energy Ltd., a subsidiary of India’s state-run power producer NTPC Ltd., is planning to raise up to 100 billion rupees ($1.2 billion) through an IPO, highlighting the increasing size of deals in the Indian market. According to a draft prospectus released on Wednesday, the proceeds will be used to invest in the company's subsidiary and repay loans.
NTPC Green Energy joined other major companies, such as Hyundai Motor India, LG Electronics, and Swiggy, in seeking $1 billion-plus IPOs, signaling a shift towards larger offerings after a series of smaller deals under $50 million.
India’s IPO market has seen a surge in activity, with listing proceeds in 2024 reaching $8.8 billion so far, surpassing the totals for the previous two years, according to Bloomberg data. The country's fast-growing economy has made it an attractive option for investors amid challenges in other markets such as China.
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