[Click eStock] "Hyundai Motor India Subsidiary IPO... Expected Cash Inflow of 3 Trillion Won"

On the 26th, SK Securities predicted that the cash inflow from the sale of existing shares due to the listing of Hyundai Motor's India subsidiary would reach around 3 trillion won.

Recently, Hyundai Motor has announced plans to list its 100% owned India subsidiary locally. According to the IPO application submitted to the Securities and Exchange Board of India (SEBI), it is expected to sell up to 17.5% of the 812 million shares held.

Researcher Yoon Hyuk-jin stated, "Upon the listing of Hyundai Motor's India subsidiary, we expect a market capitalization exceeding 20 trillion won with a price-to-earnings ratio (PER) in the low 20s," adding, "With a 17.5% sale of existing shares, the cash inflow to Hyundai Motor is expected to be around 3 trillion won."

He further noted, "Based on record-high earnings and abundant liquidity, shareholder returns such as share buybacks are expected to be further strengthened," and added, "With a 2 trillion won share buyback, Hyundai Motor's shareholder return ratio is projected to rise from 25% in 2023 to 40% in 2024."

Related beneficiary stocks include Hyundai Motor, Kia, and parts suppliers such as Hwashin, Seoyon E-Hwa, and SL.

He also pointed out, "Among major parts companies, those with a high proportion of sales from the India subsidiary in 2023 are Hwashin at 18%, Seoyon E-Hwa at 16%, Sungwoo Hitech at 13%, and SL at 11%," adding, "With the best volume growth in the Indian market, additional growth is expected through capacity expansion by Hyundai Motor and Kia."

This content was produced with the assistance of AI translation services.