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Hyundai Motor India Ltd, the Indian subsidiary of South Korean automaker Hyundai, is likely to launch its highly anticipated Rs 25,000-crore initial public offering (IPO) on October 14, according to sources. This IPO would be the largest in India since LIC's Rs 21,000-crore share sale.
As per the Draft Red Herring Prospectus (DRHP) filed in June, Hyundai's IPO is an Offer-for-Sale (OFS) of 142,194,700 equity shares by its promoter, Hyundai Motor Company, without any fresh issue of shares.
Earlier reports suggested that the South Korean firm aims to raise at least USD 3 billion (around Rs 25,000 crore) through the IPO, marking a significant event as it would be the first automaker's IPO in India since Maruti Suzuki's 2003 listing. Hyundai Motor India, the second-largest carmaker in the country, will not receive any funds from this OFS.
On September 24, the company received approval from the Securities and Exchange Board of India (SEBI) to proceed with the IPO. Hyundai Motor India believes the listing will enhance its brand visibility and provide liquidity for its shares.
In February, sources indicated that Hyundai was considering a stake dilution of 15-20% to raise between USD 3.3 billion and USD 5.6 billion.
Hyundai, which began operations in India in 1996, currently sells 13 models across different segments. This IPO launch comes amidst strong interest in the primary market, with issuers and investors showing keen participation across sectors.
So far this year, 62 companies have collectively raised around Rs 64,000 crore through the mainboard, a 29% increase from the Rs 49,436 crore raised by 57 firms in 2023. Experts attribute the IPO momentum to favorable macroeconomic factors, sector-specific opportunities, and strong inflows into domestic mutual funds.
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