Hyundai Motor shares gain as unit files for India IPO

Shares of Hyundai Motor in Seoul rose as much as 6.3% to 285,000 won ($206.03) Monday on expectations that its valuations would be boosted, after Hyundai Motor India filed a preliminary prospectus to stock market regulators over the weekend for approval to list in India.

The Hyundai Motor Indian subsidiary plans to offer up to 142.2 million shares, or about a 17.5% stake, to investors in the proposed IPO. It doesn’t plan to issue new shares.

Seoul-based Eugene Investment & Securities analyst Lee Jae-il expects the unit’s offering could raise as much as $3 billion. An IPO of that size would be India’s biggest listing ever, surpassing the $2.46 billion raised by India’s Life Insurance in 2022.

Lee said in research note that he expects parent Hyundai Motor’s valuation to be lifted by 19%, or more than KRW10 trillion, if its Indian unit is listed.

Still, a listing isn’t a certainty. Hyundai Motor in a regulatory filing in Seoul Monday said it would decide later whether or not the IPO goes as planned, depending on market conditions and investor demand.

Write to Kwanwoo Jun at Kwanwoo.Jun@wsj.com

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