📷 Image Credits: Moneycontrol
Hyundai Motor India Limited, the second largest carmaker in India after Maruti Suzuki, is gearing up for a monumental Initial Public Offering (IPO) that is set to make waves in the Indian market. The firm has filed draft papers with the Securities and Exchange Board of India (Sebi) to raise around $3 billion, making it the largest IPO in the history of India Inc. Hyundai’s IPO is all set to beat the previous record set by LIC’s $2.7 billion listing in 2022.
The IPO, a pure offer for sale (OFS) by the promoter, aims to offload up to 17.5 percent stake in its India unit, with plans to offer around 142 million Equity Shares of the face value of Rs 10 each. Hyundai’s listing plans include objectives to enhance visibility, brand image, and provide liquidity and a public market for the Equity Shares in India. The firm may also explore a pre-IPO round depending on roadshows and market conditions.
The IPO process is being facilitated by leading investment banks including Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital, and Morgan Stanley, along with notable law firms such as Shardul Amarchand Mangaldas and Latham and Watkins. The filing of draft papers follows Hyundai’s announcement to raise between $2.5 billion to $3 billion, with talks of potential high-profile deals as early as February.
Hyundai Motor India Limited ended FY23 with impressive financial figures, boasting revenue of Rs 60,000 crores and profits of Rs 4,653 crore, the highest among non-listed car manufacturers in the country. The firm’s listing plans come amid a surge in the Indian automotive market, with Hyundai accounting for a significant portion of the global sales in 2023. The company’s popular car models such as i20, Verna, Creta, Aura, and Tucson have established a strong presence in the Indian market.
The IPO announcement signifies Hyundai’s commitment to capitalizing on the growing market potential in India, with the country being one of the key revenue generators for the global auto giant. Hyundai’s strategic move to enter the Indian public markets is a testament to its long-term vision for growth and expansion in the dynamic automotive sector. As Hyundai Motor India gears up for its record IPO, all eyes are on the industry to witness the historic impact of this monumental offering.
