How Hyundai India IPO could keep listed rivals like Maruti on edge
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The much-anticipated market debut of Hyundai Motor India is set to raise the stakes in the Indian auto industry, with competition expected to heat up, particularly in the passenger vehicle segment. The IPO is likely to push other listed auto players to innovate and elevate their product offerings. Maruti Suzuki, currently the market leader with a 40% share, is just ahead of Hyundai, the second-largest player with a 15% market share. An offering of around Rs 27,800 crore, Hyundai’s IPO is coming at a premium to Maruti Suzuki. At the upper price band of Rs 1960, Hyundai is asking a valuation of 26x FY25 earnings as against Maruti's 22x FY25 multiple. This premium valuation for Hyundai is on the back of strong Korean parent backing, better models and rising SUV share in comparison to Maruti. Analysts said the higher valuation could reflect investors’ expectations of its future growth prospects. The next leg of rivalry of the top two auto...