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Hyundai Motor India to Launch India’s Biggest IPO Since LIC, To Raise ₹25,000 Crore

Highlights

Hyundai Motor India is launching a ₹25,000 crore IPO on October 14, 2024.
It will be the largest in India since LIC’s ₹21,000 crore IPO.
The IPO is an Offer-for-Sale (OFS) of 142,194,700 equity shares.
It aims to raise at least $3 billion for Hyundai Motor Company but no new funds for Hyundai Motor India.

Hyundai Motor India IPO is expected to launch on October 14. (Image credit – REUTERS)

Hyundai Motor India Ltd is all set to launch its highly anticipated ₹25,000 crore Initial Public Offering (IPO) this month. According to media reports, this will be the largest in India since the ₹21,000 crore IPO of Life Insurance Corporation (LIC).

The IPO is set to open on October 14 as per recent reports.

According to the Draft Red Herring Prospectus (DRHP) filed earlier this year in June, Hyundai’s IPO will be an Offer-for-Sale (OFS) of 142,194,700 equity shares by its parent company Hyundai Motor Company. It is also being reported that no new shares will be issued. This means the proceeds will go to the parent company and Hyundai Motor India Ltd will not receive any funds from the sale.

Hyundai Motor Company is reducing its stake in Hyundai Motor India through the OFS route. It expects to raise at least $3 billion (₹25,000 crore).

The company received approval from the Securities and Exchange Board of India (SEBI) on September 24 to proceed with the IPO.

According to the DRHP, the book-running lead managers of the proposed IPO are Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, HSBC Securities & Capital Markets Pvt Ltd, JP Morgan India Private Limited, and Morgan Stanley India Company Pvt Ltd. Meanwhile, Kfin Technologies Limited is the key issue registrar.

The Indian subsidiary of South Korean automaker Hyundai began operations in India is 1996. It currently offers 13 models across different segments and is the second-largest car manufacturer in India after Maruti Suzuki.

Hyundai Motor India mentioned in its draft papers that the IPO would enhance its visibility, boost its brand image, and provide liquidity in the public market for its shares.

Earlier in February, reports indicated that the automaker may dilute 15-20% of its stake, potentially raising between $3.3 billion to $5.6 billion.

This IPO comes at a time of growing interest in the Indian primary market. Companies from various sectors tapping into the strong market momentum. About 62 companies have raised around ₹64,000 crore through IPOs in 2024, a 29% increase compared to the ₹49,436 crore raised by 57 firms in 2023.

Hyundai Motor India will become the first automaker in India to mark an IPO in over two decades. Previously, Maruti Suzuki was listed in 2003.

FAQs

Q1. When is Hyundai Motor India’s IPO scheduled to open?

Answer. Hyundai Motor India’s ₹25,000 crore Initial Public Offering (IPO) is scheduled to open on October 14, 2024.

Q2. What is the nature of Hyundai’s IPO and how much is it expected to raise?

Answer. The IPO is an Offer-for-Sale (OFS) of 142,194,700 equity shares by Hyundai Motor Company, expected to raise at least $3 billion (₹25,000 crore).

Q3. Why is this IPO significant for the Indian market?

Answer. This IPO is significant as it is the largest in India since LIC’s ₹21,000 crore IPO and marks the first automotive IPO in over two decades, amid growing interest in the Indian primary market.