Hyundai Motor India Ltd (HMIL), the Indian arm of South Korean automaker Hyundai, has filed preliminary papers with Sebi to launch an initial public offering (IPO).
The proposed IPO is entirely an offer for sale (OFS) of 142,194,700 equity shares by Hyundai Motor Company, with no fresh issue component, according to the draft red herring prospectus (DRHP).
The company’s IPO, if it goes through, would be the largest in India, surpassing LIC’s share sale of Rs 21,000 crore.
In February this year, it was reported that Hyundai Motor Company is looking to raise at least USD 3 billion (around Rs 25,000 crore) through an IPO.
It may dilute 15-20 per cent stake in HMIL to raise funds, news agency PTI reported citing sources.
Since the public issue is completely an OFS, Hyundai Motor India Ltd, the second largest carmaker in India after Maruti Suzuki India, will not receive any proceeds of the IPO.
According to a report by Reuters early this year, Hyundai Motor has appointed investment bankers JPMorgan and Citi to advise on its India IPO.
This development marks a significant milestone for the Indian industry as it will be the first initial share sale by an automaker in over two decades, following Maruti Suzuki’s listing in 2003.
In its draft papers, HMIL said it expects that the listing of the equity shares “will enhance our visibility and brand image and provide liquidity and a public market for the shares”.
HMIL commenced operations in India in 1996 and currently sells 13 models across segments.
It reported 7 per cent year-on-year increase in total sales at 63,551 units in May 2024 against 59,601 units in the corresponding month last year.
Domestic dispatch of vehicles to dealers saw 1 per cent rise to 49,151 units last month from 48,601 units in the year-ago period.
Exports grew 31 per cent in May to 14,400 units compared to 11,000 units a year ago.
(With agency inputs)
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