The local arm of South Korea’s Hyundai Motor Co- Hyundai Motor India Ltd (HMIL)- is planning to launch its initial public offering (IPO) which could be the country’s largest ever, The Economic Times (ET) reported. The IPO will be launched around Diwali between September and November this year after bankers valued HMIL at $22-28 billion, the report added.

Hyundai IPO: Hyundai is planning to launch its initial public offering.(File)

The automaker is likely to dilute 15-20 per cent to raise $3.3-5.6 billion ( 27,390 to 46,480 crore) which would make it a larger IPO than LIC that had an issue size of 21,000 crore, it was reported.

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The ET also reported that global investment banks like Goldman Sachs, Morgan Stanley, JP Morgan and HSBC were in Seoul last week to make IPO pitches to Hyundai. One person aware of the matter was quoted in the report as saying that the momentum for this is expected to pick up after Lok Sabha elections are over in India.

“But the work has begun at the headquarters. This is a strategic market and Hyundai wants to deepen the relationship. This, arguably, is the tentpole event for them in India. The momentum is expected to pick up further after the national elections this summer,” the person said,

Hyundai Motor India Ltd was launched in India in 1996 and was the second-largest passenger vehicle seller here after Maruti Suzuki last year. At present, Maruti Suzuki has a valuation of 33.4 trillion while Tata Motors is valued at 29.3 trillion.

The valuation of Hyundai India would be around 23.3 trillion which would make the company more valuable than Mahindra & Mahindra and Bajaj Auto. Earlier this year, Hyundai Motor India Ltd announced that it had acquired General Motors India’s Talegaon plant in Maharashtra and is set to invest 6,000 crore in the state. The plant is scheduled to resume manufacturing in 2025.

Hyundai Motor India Ltd cars in India include Creta, Verna, i20, i10 and Elantra, among others.

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