SEBI has given the green signal to Hyundai Motor India's IPO, thus clearing the way for the country's biggest IPO. The company is planning to raise $3 billion through the IPO, which is equivalent to about Rs 25 thousand crores. At present, the timeline and pricing of the IPO are yet to be announced. However, Nomura feels that Hyundai Motor India deserves a valuation premium over its biggest rival Maruti Suzuki India.

Valuation premium refers to a situation when a buyer is willing to pay additional valuation for a company's business or asset or stock as compared to the business or asset or stock of another company of the same level in the same sector. Value premium is the additional return received in a value stock as compared to the return of a growth stock. The brokerage house has given this opinion in view of the decline in Maruti Suzuki's market share.

Hyundai benefits from Maruti's reduced market share Maruti Suzuki is the country's largest automaker. The company has a 41 percent market share and the company's market cap is $48 billion. Which is 22.6 times the 12-month forward PE of its FY 2025 earnings. However, the company is facing increasing competition and its market share is declining, which may benefit the second-ranked company Hyundai Motor India. Hyundai Motor has maintained a 15 to 17 percent share in the Indian auto market since 2008. According to Nomura, with the success of models like Creta, Exter and Venue, the company is continuously strengthening its position in the market. At the same time, Nomura said that with the launch of new models, Hyundai Motor India's growth can accelerate between 2025-26. According to the report, the company can get new growth with the launch of Creta EV in 2025 and the start of production of petrol hybrid SUV in 2026. IPO approval According to a report by Moneycontrol, the IPO can be launched in October and the company is running with a valuation of 18 to 20 billion dollars. At present, the announcement regarding the timeline and price of the IPO is yet to come.