The Securities and Exchange Board of India (SEBI) has given its approval to what is being hailed as the biggest initial public offering seen in the country. The capital markets regulator has given a green light to Hyundai Motor Co’s Indian unit, Hyundai Motor India Limited, for launching its IPO worth nearly $3 billion.
The company has submitted its draft red herring prospectus and is now expected to launch its maiden offering to raise nearly Rs 25,000 crore in October, reported Moneycontrol. This public offer follows a series of high profile IPOs that have hit the markets recently.
Quoting sources in the know, the report said, “The regulator's final observations have come in. This record breaking IPO is likely to be launched in October.” The issue comprises only an offer-for-sale by the promoter. The auto giant filed its draft papers earlier this year on June 15.
“The objects of the offer are to carry out the Offer for Sale of up to 142,194,700 Equity Shares of the face value of Rs 10 each by the Promoter Selling Shareholder and to achieve the benefits of listing the Equity Shares on the Stock Exchanges. Further, our Company expects that listing of the Equity Shares will enhance our visibility and brand image and provide liquidity and a public market for the Equity Shares in India,” the DRHP revealed.
The IPO’s company counsel is law firm Shardul Amarchand Mangaldas. Cyril Amarchand Mangaldas is acting as the banks’ counsel and Watkins is playing the international counsel role in the offer. The i-banks advising on the maiden offer include HSBC Securities, J P Morgan, Kotak Mahindra Capital, Morgan Stanley, and Citi.
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The DRHP of the issue revealed that the automaker has been the second largest OEM in the Indian passenger vehicles market since the 2008-29 fiscal year in terms of domestic sales volumes.
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