Hyundai Motor India, the Indian arm of South Korean automaker Hyundai and second largest car maker by sales has filed the draft IPO papers with market regulator, SEBI. The company is looking to raise about $3 billion or Rs 25,000 crore from the Initial Public Offer and the proposed IPO is entirely an offer for sale (OFS) of 142,194,700 equity shares.
This could be the biggest IPO in the Indian market. If the offer goes through, it would be surpassing even LIC’s Rs 21,000 crore offer. As per industry sources, there would be no fresh issue of shares and auto major plans to use the money raised from the IPO or the Initial Public Offer for expansion. Since the public issue is completely an OFS or offer for sale, Hyundai Motor India will not receive any proceeds of the IPO.
This development will also be a significant milestone for automotive companies in India as this it will be the first initial share-sale by an automaker in over two decades, following Maruti Suzuki’s listing in 2003.
According to PTI, in its draft papers, HMIL said it expects that the listing of the equity shares “will enhance our visibility and brand image and provide liquidity and a public market for the shares”. Hyundai Motor India kickstarted its operations in India in 1996 and currently sells 13 models across segments.
The second largest carmaker has sold 7,77,876 units in India in FY24- the highest ever and YTD (till May 2024), Hyundai India sold 2,59,669 vehicles, up over 5% YoY. Creta, Exter and i20 are among the top sellers and the Indian market accounts for 13% of Hyundai’s global sales.
With inputs from PTI.
