The planned IPO is structured entirely as an offer for sale (OFS) involving 142,194,700 equity shares by Hyundai Motor Company, as detailed in the draft red herring prospectus (DRHP). Notably, there is no fresh issue component in this offering
Mumbai: Hyundai Motor India Ltd (HMIL), the Indian subsidiary of South Korean automotive giant Hyundai, has officially submitted preliminary paperwork to Sebi for an initial public offering (IPO). If successful, this IPO will set a new record as the largest in India, exceeding LIC’s Rs 21,000 crore share-sale.
The planned IPO is structured entirely as an offer for sale (OFS) involving 142,194,700 equity shares by Hyundai Motor Company, as detailed in the draft red herring prospectus (DRHP). Notably, there is no fresh issue component in this offering.
Earlier this year in February, sources indicated that Hyundai Motor Company aimed to raise at least USD 3 billion (approximately Rs 25,000 crore) through this IPO, potentially diluting 15-20 percent of its stake in HMIL.
As the offering is solely an OFS, Hyundai Motor India Ltd, India’s second-largest carmaker after Maruti Suzuki, will not benefit financially from the IPO proceeds. This initiative represents a significant milestone, marking the first automaker IPO in India in over two decades, since Maruti Suzuki’s 2003 listing.
Additionally, this week saw electric two-wheeler manufacturer Ola Electric gaining Sebi’s approval to raise capital via an IPO.
HMIL emphasized in its draft papers that listing the equity shares would bolster their visibility, enhance the brand image, and provide liquidity and a public market for their shares.
Since beginning operations in India in 1996, HMIL currently offers 13 models across various segments. The company reported a 7 percent year-on-year increase in total sales for May 2024, with domestic dispatches rising by 1 percent and exports growing by 31 percent compared to the previous year.