Hyundai Motor’s India IPO receives approval from SEBI

Hyundai Motor India has received the green light from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO), as reported by two individuals with knowledge of the matter. This development marks a significant milestone for the automotive industry in India.

The South Korean automotive giant is aiming to raise a substantial sum of USD 3 billion through this IPO, with the company's valuation estimated at approximately USD 20 billion, according to information previously disclosed to Reuters by sources close to the situation.

This IPO is significant as it represents the first time in two decades that an automobile manufacturer has gone public in India. The last time this happened was in 2003 when market leader Maruti Suzuki made its debut on the Indian stock market.

The decision to go public comes at a time when Hyundai is actively seeking to regain market share in India. The company faces increasingly strong competition from domestic rivals, with Tata Motors being a notable contender. In response to this challenge, Hyundai is expanding its range of sport utility vehicles (SUVs) to appeal to the growing demand in this segment.

Looking ahead, Hyundai has ambitious plans for the Indian market. The automaker is set to introduce its first India-manufactured electric vehicle in the early part of next year. Starting from 2026, the company intends to launch at least two gasoline-powered models specifically designed for the Indian market, as revealed by three sources familiar with Hyundai's strategic plans in previous discussions with Reuters.

India holds a crucial position in Hyundai's global operations, ranking as the third-largest revenue generator for the company worldwide, following only the United States and South Korea. Recognising the importance of the Indian market, Hyundai has already invested USD 5 billion in the country. The company has committed to injecting an additional USD 4 billion over the next decade, underlining its long-term commitment to the Indian automotive sector.

In a separate but equally significant development, SEBI has also given its approval for the IPO of Swiggy, the food delivery giant backed by SoftBank. According to multiple sources familiar with the matter, Swiggy is targeting a valuation of around USD 15 billion for its public offering. The company aims to raise between USD 1 billion to USD 1.2 billion through this IPO, further highlighting the dynamic nature of India's evolving business landscape and the increasing interest in tech-enabled services in the country.