Hyundai Motor India M-Cap Nears ₹2 Lakh Crore as Stock Jumps Over 12% in 4 Sessions

Stock Soars Over 12% in Just Four Days

Hyundai Motor India Ltd. (HMIL), the Indian arm of South Korea’s Hyundai Motor Company, has made headlines with an impressive rally on the grey market and unlisted space. In the last four sessions alone, the company's implied market capitalisation has surged over 12%, bringing it tantalizingly close to the ₹2 lakh crore mark.

This meteoric rise comes amid increasing anticipation of the company’s much-awaited Initial Public Offering (IPO), which, if executed, would mark one of the largest listings in India's automobile sector in recent years.

Grey Market Buzz Boosts Sentiment

While HMIL is yet to be officially listed, grey market activities and institutional discussions have significantly fueled investor enthusiasm. Industry insiders and analysts estimate the company’s m-cap is hovering around ₹1.95–1.98 lakh crore, based on prevailing grey market premiums and valuations drawn from comparable automakers.

"Market enthusiasm is primarily driven by Hyundai’s strong brand equity, its dominant position in the Indian passenger vehicle market, and the expected size and pricing of the upcoming IPO," said Amit Khurana, Head of Equities at Dolat Capital. “The recent 12% uptick reflects both demand optimism and the scarcity premium often seen before mega IPOs.”

Hyundai's Indian Performance: A Closer Look

Hyundai Motor India is the second-largest carmaker in India after Maruti Suzuki, boasting a market share of over 14% in FY24. The company offers a broad portfolio of vehicles across hatchbacks, sedans, SUVs, and now increasingly in the electric vehicle (EV) space.

In FY24, Hyundai sold more than 6.14 lakh units domestically and exported another 1.63 lakh units, showing resilience in a competitive and price-sensitive market. Analysts cite strong operational metrics, a wide dealership network, and technological innovation as key growth drivers.

Moreover, the launch of the Hyundai Exter, Creta facelift, and expanding EV plans have further boosted investor confidence.

IPO Anticipation: A Landmark Move

Hyundai Motor India’s IPO is expected to raise between ₹25,000 crore and ₹30,000 crore, potentially placing it among the top IPOs ever on Indian bourses. The company has already appointed investment bankers and initiated discussions with SEBI to file the Draft Red Herring Prospectus (DRHP).

"Hyundai’s listing will mark a significant shift in India’s auto sector dynamics," said Anisha Jain, Senior Analyst at Motilal Oswal. “Not only will it unlock value for the parent company, but it also gives domestic investors a chance to directly participate in one of the most influential automobile brands in India.”

Market Context: Auto Sector Riding a High

The Indian auto industry has been on a steady uptrend, with several players like Tata Motors and Mahindra & Mahindra delivering strong shareholder returns in the past year. Robust rural demand, easing supply chain issues, and declining raw material prices have boosted profitability.

Additionally, the government's Production Linked Incentive (PLI) schemes and focus on EVs have added structural strength to the sector’s long-term outlook. In this context, Hyundai’s potential entry into the stock market has amplified excitement across all investor categories—retail, institutional, and foreign.

Analyst Perspectives

Many brokerages are bullish on Hyundai Motor India’s outlook, even before the IPO roadshow begins.

“Given its scale, product diversification, and R&D capabilities, Hyundai Motor India could command premium valuations,” noted Rohan Mehta, Fund Manager at Turtle Wealth. “The expected m-cap of around ₹2 lakh crore is not only justified but could be conservative once the public offering concludes.”

However, Mehta also cautioned that the final valuation would depend on the issue pricing, dilution, and market conditions at the time of listing.

Investor Outlook: Cautious Optimism

While the stock’s rally in the unlisted market reflects robust confidence, some market veterans urge caution. Valuation froth and execution risks remain.

“Investors should wait for more clarity on the DRHP, pricing band, and financial disclosures before making significant allocations,” said Nidhi Verma, Senior VP, IIFL Securities. “That said, Hyundai's track record and market share offer considerable comfort.”

Retail investors, particularly HNIs (High Net-Worth Individuals), have already begun showing interest, hoping to benefit from pre-IPO positioning.

As Hyundai Motor India edges closer to an official stock market debut, its near-₹2 lakh crore market capitalisation signals growing market confidence and long-term potential. With a robust sales performance, strong brand value, and ambitious plans for EV penetration, the company appears poised to become a major player on Dalal Street.

If the IPO is executed successfully, it could set new benchmarks not just in the auto sector but in the broader IPO market for 2025.