German auto parts maker Mahle considers $400M IPO for Indian business

German car-parts manufacturer Mahle is exploring the possibility of an initial public offering (IPO) for its Indian operations, according to sources familiar with the matter.

German auto parts maker Mahle considers $400M IPO for Indian business

This move aligns with a growing trend among foreign companies looking to list their subsidiaries on India's vibrant stock markets. Mahle is currently in early discussions with potential advisers regarding a share sale in Mumbai. The company is still evaluating which specific parts of its operations to include in the offering, the sources added, speaking on the condition of anonymity as the information has not been made public. The IPO could raise up to $400 million, with Mahle targeting a valuation of approximately $1 billion for its Indian unit, one source revealed. However, the discussions are still in their early stages, and the specifics of the offering may change as plans evolve. A spokesperson for Mahle, based in Stuttgart, stated that the company routinely reviews its portfolio and sees India as a highly attractive market, but declined to provide further details.

India continues to be one of the most active markets globally for IPOs

India continues to be one of the most active markets globally for IPOs, with its equity indexes set for a ninth consecutive year of growth. The strong market performance and high valuations are encouraging international firms to consider listing their Indian operations. In October, Hyundai Motor Co.’s Indian arm raised $3.3 billion in the country’s largest-ever IPO. Other companies reportedly weighing similar options include LG Electronics and Norway’s Orkla ASA, according to Bloomberg News.