Hyundai is planning to list its Indian business in what is set to be one of the biggest-ever public offerings in India amid rising car ownership and soaring equity markets in the world’s fastest-growing large economy. The South Korean automaker will sell up to 142mn shares, or 17.5 per cent, of its holding in Hyundai Motor India on local exchanges, according to the draft prospectus seen by the Financial Times.
In a regulatory filing in February, the parent group said: “We are reviewing various activities including the listing of an overseas unit to boost corporate value.” Kim Kwang-soo, an analyst at LS Securities in Seoul, wrote in a report that Hyundai would raise about Won3tn-Won4tn in the IPO and use the proceeds to increase capacity at its Indian plants. He estimated that India accounts for about 8 per cent of Hyundai’s net profits.