 |
Hyundai Motor |
[Alpha Biz= Reporter Kim Sangjin] Hyundai Motor Company is set to kick off the initial public offering (IPO) process for its Indian subsidiary.
According to The Economic Times, an Indian financial daily, on the 11th (local time), Hyundai Motor India plans to submit the Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) within the next two weeks.
The DRHP review process typically takes 2 to 3 months. Considering the time required for the review process, subscription, and allocation, it is expected that the listing will be finalized around September or October of this year.
Hyundai Motor is estimated to be valued between $22 billion (approximately 30 trillion won) and $28 billion (approximately 38.6 trillion won) for its Indian subsidiary. The Indian business accounts for about 8% of the company's net profit.
With the recent popularity of Sports Utility Vehicles (SUVs), Hyundai Motor has also seen an uptick in performance. As of May, Hyundai Motor held a dominant 67% market share in the Indian SUV market.
Through this IPO, Hyundai Motor's Indian subsidiary is expected to sell 15-20% of its stake and raise around 3-4 trillion won.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
