Hyundai Motor and its suppliers saw a rise in their stock prices on the Seoul exchange following the announcement that Hyundai's Indian unit plans to file for an IPO. This move aims to raise approximately $3 billion, potentially valuing the Indian unit between $25 billion and $30 billion. The IPO, expected to occur by the end of 2024, could become the largest ever in India.

Hyundai Motor India is a key player in the market, holding a 15% share and selling 567,000 vehicles in the last fiscal year. The funds raised through the IPO are intended to bolster Hyundai's presence in India, supporting initiatives such as the expansion of electric vehicle production, setting up a charging infrastructure, and enhancing manufacturing capacity.

This strategic move also seeks to address the "Korea discount," a term referring to the lower valuation of South Korean companies compared to global peers. By listing in India, Hyundai hopes to achieve a higher valuation, leveraging the robust growth of the Indian stock market compared to the relatively modest gains in Seoul's KOSPI index.

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