Hyundai India Prepares for Country’s Largest IPO: SEBI Clears Draft Papers; Company Aims to Raise ₹25,000 Crore via IPO

Hyundai Motor India, a subsidiary of the South Korean company Hyundai, is gearing up to launch its initial public offering (IPO) in the Indian market. The company has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on Saturday, June 15, to initiate the IPO process. 

Hyundai Motor India aims to sell a 17.5% stake through this IPO, seeking to raise between $2.5-3 billion (approximately ₹25,000 crore). The offering will involve selling 142 million shares out of its total 812 million shares, marking a significant financial move in India’s automotive sector.

Hyundai India to Offer Existing Shares, Not Issue New Ones in IPO

Contrary to issuing new shares, Hyundai India’s parent company Hyundai will offer a portion of its existing shares through an Offer for Sale (OFS) in this IPO. 

This move allows the company to sell a percentage of its stake to institutional investors and other participants, rather than issuing new shares to the market.

Hyundai Appoints JP Morgan, Citi, and HSBC as Advisors for IPO

According to reports, Hyundai is planning to launch its IPO around Diwali, potentially in October-November. For this IPO, Hyundai has appointed investment banks JP Morgan, Morgan Stanley, Kotak Mahindra Bank, Citi, and HSBC as advisors.

First IPO of an Automaker in India in 20 Years

This IPO marks the first initial public offering (IPO) of an automaker in India in two decades. Prior to this, Maruti Suzuki had launched its IPO in 2003, making it the first major IPO in the Indian automotive sector. Hyundai, subsequently, became the country’s second-largest car manufacturer after Maruti Suzuki in India.

Hyundai India’s IPO Valued at Approximately ₹25,000 Crore

Hyundai India’s upcoming IPO is anticipated to be valued at around ₹25,000 crore. If successful, this would mark the largest IPO in the country’s history thus far. In 2022, the government divested a 3.5% stake in LIC through its IPO, raising approximately ₹21,000 crore.

Hyundai Motor India to Become the Fourth Largest Listed Auto Company

If Hyundai Motor India lists on the stock market in India, it will become the fourth largest listed auto company after Maruti Suzuki, Tata Motors, and Mahindra & Mahindra. Hyundai Motor India is currently the second largest car manufacturer in the country, following Maruti Suzuki.