- Hyundai Motor India aims to raise ₹25,000 crore through an IPO on October 14, the largest since LIC's ₹21,000 crore share sale.
- The IPO is an offer-for-sale of 142,194,700 shares by Hyundai Motor Company, with no fresh issue component.
Hyundai Motor India is gearing up for a major initial public offering (IPO) on October 14, aiming to raise ₹25,000 crore. This will mark the largest IPO in India since the Life Insurance Corporation's (LIC) ₹21,000 crore share sale. The proposed IPO will be an offer-for-sale (OFS) of 142,194,700 equity shares by the promoter, Hyundai Motor Company, without any fresh issue component. The details were disclosed in the draft red herring prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI) in June.
The South Korean automaker’s Indian arm is expected to dilute a 15-20 percent stake through this IPO, which would raise an estimated $3 billion (₹25,000 crore). Hyundai Motor India will not receive any proceeds from the IPO, as the public offering is exclusively an OFS.
Hyundai, which began its Indian operations in 1996, is currently the second-largest car manufacturer in India, trailing only Maruti Suzuki. With this IPO, Hyundai Motor India will be the first automaker in 20 years to go public, following Maruti Suzuki's 2003 listing.
The primary objectives of the IPO, as stated in the DRHP, are to "enhance visibility and brand image and provide liquidity and a public market for the shares."
Hyundai Motor India received SEBI's approval on September 24, paving the way for the October listing.
For the nine months ending December 31, 2023, Hyundai Motor India reported a revenue of ₹32,488.34 crore, with a net profit of ₹4,382.87 crore and a profit margin of 13.5 percent. The book-running lead managers for the IPO are Kotak Mahindra Capital, Citigroup Global Markets India, HSBC Securities, JP Morgan India, and Morgan Stanley India. Kfin Technologies Limited has been appointed as the issue registrar.
Edited by Harshajit Sarmah
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Harshajit Sarmah
