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Hyundai Motor |
[Alpha Biz= Reporter Kim Sangjin] Recently, Hyundai Motor's Indian subsidiary, which has applied for an initial public offering (IPO) with the Securities and Exchange Board of India (SEBI), is expected to potentially boost Hyundai Motor's stock price in the domestic market by up to 30% upon listing.
Eugene Investment & Securities stated in a report on the 17th that the estimated market capitalization of Hyundai's Indian subsidiary is around $17.1 billion (approximately 23.7 trillion Korean Won). They explained, "When considering this valuation compared to the market capitalizations of Maruti Suzuki and Suzuki Motor, the discounted stake value, IPO proceeds, and the profitability of the Indian subsidiary, we estimate a market cap increase effect of approximately 10.57 trillion Korean Won."
Eugene Investment & Securities further noted, "With the planned operation of the Talegaon new plant next year and an increase in the proportion of Sports Utility Vehicles (SUVs), the average selling price (ASP) and profitability in the Indian market are rapidly growing each year." They added, "With the launch of the Kreta EV (electric vehicle) next year, Hyundai is poised to emerge as a major player in the Indian electric vehicle market, which could further enhance the company's post-IPO valuation beyond the current estimated amount."
The investment firm also forecasted, "Taking into account these optimistic prospects, Hyundai Motor's increase in corporate value could amount to approximately 16.8 trillion Korean Won (29.9% higher than the current stock price)."
Hyundai Motor commented, "The final decision on the IPO will be determined based on market conditions, preliminary demand forecasts, and other factors," and they added, "Details regarding the progress will be disclosed at the confirmed timing or within 6 months as planned."
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
