German Auto Component Leader Webasto Sets Sights on India IPO by 2027, Appoints Lead Bankers
German automotive component maker Webasto Group is gearing up for a significant IPO through its Indian arm, Webasto Roofsystems India, with plans to raise between USD 400 to 500 million (~INR 4,000 – 5,000 crore). The listing, scheduled for 2027, is poised to value the Indian subsidiary at approximately USD 2 billion. As India’s automotive market experiences rapid consumer premiumization, Webasto seeks to capitalize on the growing demand for comfort features in passenger vehicles. The involvement of Axis Capital and JM Financial as financial advisors indicates a structured approach to the IPO, lining up with the increasing trend of multinational corporations tapping into Indian capital markets.
Recent financial performance from Webasto Roofsystems India highlights its impressive growth trajectory, with revenues increasing by 31.5% in FY25, driven largely by heightened OEM installation rates. The EBITDA surged by a remarkable 183.3%, reflecting operational efficiency and effective sourcing strategies. The turnaround to a net profit after experiencing losses in the previous fiscal year positions Webasto as a formidable player in the Indian automotive sector, particularly in mass-market vehicle features such as their panoramic roof systems. Such milestones undoubtedly enhance the company’s appeal in the investor landscape.
As Webasto enters the capital markets, it builds upon a robust sentiment in the Indian IPO space, particularly for automotive component manufacturers. Recent IPOs in this sector have seen overwhelming demand, evidenced by subscription rates soaring beyond initial expectations, and favorable listing premiums. This IPO aligns with a broader trend wherein MNCs are unlocking substantial value in their Indian subsidiaries, reflecting a shift towards leveraging local markets for growth. For Indian investors, this presents a compelling opportunity to engage with a market leader in a rapidly evolving automotive ecosystem, bolstered by international growth potential and strategic investments.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova IPO team.)