Hyundai Motor Co. has hired Kotak Mahindra Bank Ltd. and Morgan Stanley as advisors for a potential initial public offering (IPO) of its India unit. The South Korean automaker is evaluating what could be one of the largest IPOs in the South Asian nation’s history. These banks join Citigroup Inc., HSBC Holdings Plc and JPMorgan Chase & Co. as advisors on the IPO, which, according to BloombergNewscould raise around $2.5 billion for India’s second-largest automaker.
Hyundai Motor India Ltd. plans to file for the IPO in June, the International Financing Review (IFR) reported last Monday, noting that Kotak and Morgan Stanley were joining the advisory syndicate, citing unnamed sources with knowledge of the situation. IFR mentioned that the IPO could raise up to $3 billion.
KYC Mamut, FAW, Changan: Chinese utility vehicles dominate the Argentine automotive market
An IPO of between $2.5 billion and $3 billion would rival that of Life Insurance Corp. of India in 2022, when it raised about 206 billion rupees ($2.5 billion).
The list of banks could still change, and no final decision has been made on the size and timing of the share sale, said the sources, who asked not to be identified discussing private information. If the South Korean company goes ahead with the IPO, it will use the proceeds to expand its operations, Bloomberg has reported.
India’s BSE Sensex stock index has risen about 20% in the last seven months and is at an all-time high. Volatility has been rising in the run-up to the national elections — with polls concluding this Saturday, a volatility index for Indian stocks hit its highest level in almost two years on Monday.
Add Comment