Mumbai15 hours ago
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Hyundai Motor India, the Indian unit of South Korean company Hyundai, is gearing up to launch its largest ever 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 June 15 (Saturday) to launch the IPO.
Hyundai Motor India sold its 17.5% stake through IPO for $2.5-3 billion i.e. around Rs. 25,000 crore wanted to raise. The company is selling 142 million i.e. 14.2 crore shares out of its total 812 million (81.2 crore) shares in this IPO.
The company will not issue new shares in the IPO
The company will not issue new shares in this IPO. However, Hyundai India’s parent Hyundai is selling part of its stake in the company to retailers and other investors through an Offer for Sale (OFS).
JP Morgan, Citi and HSBC acted as advisors
According to reports, the company’s IPO may come around Diwali i.e. in October-November. Hyundai has appointed investment banks JP Morgan, Morgan Stanley, Kotak Mahindra Bank, Citi and HSBC as advisors for the IPO.
Automaker’s first IPO in India in 20 years
The IPO will be the first initial public offering of an automaker company in India in 20 years. Earlier Maruti Suzuki’s IPO was in 2003. Hyundai is the second largest car manufacturer in the country after Maruti Suzuki India.
This will be the country’s largest IPO after LIC
Hyundai India’s IPO price will be around 25 thousand crore rupees. If it happens, it will be the largest IPO in the country so far. In 2022, the government sold its 3.5% stake in LIC. For this, an IPO of around 21 thousand crore rupees was brought.
Hyundai Motor India will be the fourth largest listed auto company
If Hyundai Motor gets listed on the Indian stock market, it will be the fourth largest automobile company after Maruti-Suzuki, Tata Motors, Mahindra & Mahindra. Hyundai Motor India is the second largest car company in the country after Maruti.
