Hyundai doubles down on India with IPO that could be country's biggest

NEW DELHI (Reuters) -- Hyundai Motor's India unit on Saturday sought regulatory approval for a stock market listing in Mumbai that could be the nation's biggest.

The application calls for the South Korean parent to sell a stake of up to 17.5% in the company.

The IPO would make the Hyundai unit the country's first carmaker to go public in two decades, since Maruti Suzuki did so in 2003. It would also come with Indian stocks trading near record highs.

Hyundai counts India as a crucial growth market. It has two manufacturing units in the country and has invested $5 billion, with commitments to pump in another $4 billion over the next decade. The world's biggest car market after China and the U.S. is the company's third-biggest revenue generator globally.

The Hyundai draft prospectus gives no details of the IPO's pricing or the company's valuation, but sources have told Reuters Hyundai aims to raise around $2.5 billion to $3 billion at a valuation of up to $30 billion.

Hyundai, India's second-biggest carmaker behind Maruti Suzuki, would not issue new shares in the IPO. Instead, its South Korean parent would sell part of its stake in the wholly owned unit to retail and other investors via a so-called "offer for sale" route.

The listing is seen putting Hyundai Motor India on a stronger footing versus Maruti Suzuki, Tata Motors and other rivals as it could make future fundraising easier, without the need to depend on its Korean parent.

Hyundai expects the listing "will enhance our visibility and brand image," and "provide liquidity and a public market" for the shares, the company said in the draft prospectus filed on Saturday.

It did not provide a timeline for the listing, but typically the Securities and Exchange Board of India takes