Hyundai Motors IPO: Can it beat Maruti Suzuki’s market valuation?

Hyundai Motor India has received approval from the Securities and Exchange Board of India (Sebi) to launch its much-anticipated Rs 25,000 crore initial public offering (IPO).
This move is expected to boost the parent company, Hyundai Motor Company’s, visibility and brand image in India, as well as provide added liquidity.
According to Nomura India, Hyundai Motor India deserves a higher valuation compared to Maruti Suzuki, especially as Maruti’s market share has been shrinking.
Hyundai, the second-largest automaker in India, has maintained a steady market share of 15-17% since 2008.
In 2023, the company achieved its highest-ever domestic sales of 6,02,000 units, reflecting a 9% growth compared to the previous year.
This success has largely been driven by its popular SUVs, particularly the Creta, Exter, and Venue models.
Nomura also noted that while Hyundai’s year-to-date sales through August grew by 2%, slightly behind the overall industry’s 6% growth, the company’s performance is expected to pick up speed in 2025-26 with the introduction of new models, including the Creta EV and a petrol-hybrid SUV set to be produced at the newly acquired General Motors plant in Maharashtra.
While battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs) make up only a small part of India’s car market—2% and 3%, respectively—Nomura expects the demand for these vehicles to grow in the coming years.
Hyundai’s market cap in Korea currently stands at $39.6 billion. If the Indian unit achieves a market cap of $18-20 billion post-IPO, it would represent about 45-50% of Hyundai’s total market value.
In the IPO, Hyundai Motor India will offer shares with a face value of Rs 10 each, consisting of a primary offering through an offer for sale (OFS) by the Korean parent company.
With Hyundai’s solid performance and future growth prospects, the IPO has the potential to position Hyundai Motor India as a strong contender in the market.
The real question is whether its valuation can ultimately surpass that of Maruti Suzuki, given the shifting dynamics in the Indian auto industry.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)