Hyundai Motor Co. has enlisted Kotak Mahindra Bank Ltd. and Morgan Stanley as advisers for a potential initial public offering (IPO) of its India unit, according to sources familiar with the matter. This move could lead to one of the largest-ever listings in India.
Kotak and Morgan Stanley join Citigroup Inc., HSBC Holdings Plc, and JPMorgan Chase & Co. as advisers for the IPO, which Bloomberg News reports could raise around $2.5 billion for India’s second-largest carmaker. A Morgan Stanley representative declined to comment, and Hyundai and Kotak did not respond to requests for comments.
According to a report by International Financing Review (IFR) on Monday, Hyundai Motor India Ltd. plans to file for the IPO in June. IFR, citing anonymous sources, also mentioned that the listing could raise as much as $3 billion.
An IPO of this magnitude, between $2.5 billion and $3 billion, would be comparable to the Life Insurance Corp. of India’s 2022 listing, which raised approximately ₹20,600 crore ($2.5 billion).
The lineup of banks involved may still change, and no final decisions have been made regarding the size and timing of the share sale, the sources said. If Hyundai proceeds with the IPO, the funds will be used to expand operations, Bloomberg reported.
India’s BSE Sensex stock index has risen about 20 percent over the past seven months, reaching a record high. However, volatility has been increasing in the lead-up to national elections, with a gauge of volatility in Indian stocks hitting its highest level in nearly two years on Monday.
