Hyundai Motor India Submit Draft IPO Papers to SEBI, Plans for the Biggest IPO of India of $3 Billion

Hyundai Motor India has submitted draft papers to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).

According to the draft red herring prospectus, Hyundai Motor Company, the Korean auto giant, plans to dilute a 17.50% stake in its Indian arm through an offer-for-sale (OFS). This translates to selling 142,194,700 shares out of its 100% stake, which currently stands at 812,541,100 shares.

The IPO aims to raise approximately USD 3 billion (around Rs 25,000 crore). The expected valuation for Hyundai Motor India is around USD 18 billion (approximately Rs 1,50,390 crore).

If successful, this IPO will be the largest ever in India, surpassing the 2022 LIC IPO, which raised Rs 21,000 crore. Remarkably, this marks the first time in over two decades that an automaker is going public in India. The last carmaker to do so was Maruti Suzuki India back in 2003.

Hyundai has appointed Kotak Mahindra Capital, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), J.P. Morgan India, and Morgan Stanley India as book running lead managers for the IPO.

Hyundai Motor India is currently the second-largest carmaker in India by volume, trailing only Maruti. It also holds the position of the second-largest car exporter from India. The company sells 14 models, including popular ones like the Creta, Venue, Verna, and i20.

Going public allows Hyundai to raise substantial capital by selling shares to the public. This infusion of funds can be used for various purposes, such as expanding production capacity, investing in research and development, and strengthening the company's financial position. In addition, by listing on the stock exchange, Hyundai aims to unlock the value of its Indian subsidiary. The IPO provides an opportunity for existing shareholders (including the parent company) to monetize their holdings and realize gains.

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