Hyundai Motor India IPO: Hyundai Motor India Ltd, the Indian subsidiary of South Korean automaker Hyundai, is set to launch its highly anticipated Rs 25,000-crore Initial Public Offering (IPO) on October 14, according to sources familiar with the matter told PTI. The offering will be India's largest IPO since the Rs 21,000-crore listing of Life Insurance Corporation (LIC).
As per the Draft Red Herring Prospectus (DRHP) filed in June, the Hyundai IPO will be an entirely Offer-for-Sale (OFS) issue, involving the sale of 142,194,700 equity shares by promoter Hyundai Motor Company. The IPO will not include any fresh equity component, meaning that Hyundai Motor India will not receive any proceeds from the sale.
Industry insiders previously indicated that Hyundai's parent company is targeting at least $3 billion (approximately Rs 25,000 crore) through this public offering. This would be a historic moment for India's automotive sector, marking the first IPO by an automaker in over two decades, following Maruti Suzuki's listing in 2003.
The South Korean parent firm will be diluting part of its ownership in the Indian arm via the OFS route. Hyundai Motor India, which ranks as the second-largest carmaker in the country after Maruti Suzuki India, received approval from the Securities and Exchange Board of India (SEBI) on September 24 to proceed with its IPO.
In its DRHP, Hyundai Motor India stated that it expects the listing of its shares to enhance the company's visibility, improve its brand image, and create liquidity for shareholders.
Earlier this year, in February, it was reported that Hyundai Motor Company might dilute 15-20% of its stake in Hyundai Motor India, potentially raising between $3.3 billion to $5.6 billion through the IPO.
Hyundai Motor India began its operations in 1996 and currently offers 13 models across various segments in the Indian market.
The IPO announcement comes at a time when the primary market is experiencing significant activity. This year, 62 companies have collectively raised Rs 64,000 crore through mainboard IPOs, marking a 29% increase compared to the Rs 49,436 crore raised by 57 companies in all of 2023.
Market experts attribute the strong momentum to favorable macroeconomic factors, increased interest from domestic mutual funds, and corporate capital formation, all contributing to the robust IPO pipeline.
In September, Ola Electric Mobility, an electric two-wheeler manufacturer, also debuted on the stock exchange following a successful Rs 6,145-crore IPO.
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