Hyundai Motor India Limited (HMIL), the Indian subsidiary of South Korean auto giant Hyundai Motor Co, has submitted draft documents to Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) aimed at raising around Rs 25,000 crore.
According to the Draft Red Herring Prospectus (DRHP) filed, Hyundai Motor India plans to offer for sale (OFS) 142,194,700 equity shares, each valued at Rs 10.
Hyundai’s draft prospectus does not include specifics about IPO pricing or the company’s valuation. However, IIFL Securities indicate that Hyundai aims to raise between $2.5 billion and $3 billion, with a potential valuation of up to $30 billion.
If successful, this would rank among India’s largest IPOs, second only to the $2.5 billion (approx. Rs 21,000 crore) Life Insurance Corporation of India offering in 2022.
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Key Objectives of Hyundai Motor IPO
According to the Draft Red Herring Prospectus (DRHP) filed on June 14 2024, the main goals of the offer are:
- To conduct an offer for sale by the promoter-selling shareholder.
- To gain the benefits of listing the equity shares on stock exchanges.
The company believes that listing the shares will boost its visibility, strengthen its brand image, and offer liquidity and a public market for its equity shares in India.
Hyundai Motor India Ltd (HMIL) has proposed an Offer for Sale (OFS) for its IPO, meaning the company will not receive any funds from the offering; all proceeds will go to the parent firm, Seoul-based Hyundai Motor Company.
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This IPO would be the first by a car manufacturer in over two decades, since Maruti Suzuki’s IPO in 2003. Last week, Ola Electric also received SEBI’s approval for its IPO.
According to the Society of Indian Automobile Manufacturers (SIAM), HMIL began operations in India in 1996 and currently offers 13 models, including the Creta, Venue, and i20.
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In FY24, Hyundai Motor India sold 614,000 passenger vehicles in the country, achieving an 8.3% year-over-year growth.
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Disclaimer: The above content is for informational purposes only. Please consult a SEBI-registered investment advisor before making any investment decision.
