Hyundai Motor India Ltd, a subsidiary of South Korean automotive manufacturer Hyundai Motor Company, has taken a step in this direction and has filed draft papers with SEBI for its initial public offering (IPO). This IPO aims to raise about $3 billion (Rs 25,000 crore), which will be a milestone in India's corporate history.
Key Details of the IPO
Hyundai Motor India now plans for a historical success as it has submitted its draft red herring prospectus (DRHP) with SEBI. The company aims to float around $3 billion, which if achieved will be largest IPO ever witnessed in Indian markets, beating state owned LIC (Life Insurance Corporation’s) $2.7 billion listing in 2022.
The IPO offer comprises up to 142,194,700 number of equity shares of face value of Rs 10/- each through OFS by the promoter. Hyundai Motor India believes that these shares could increase public awareness of the company, enhance brand image, and in the PMS, have marketability.
Advisors and Valuation
The automaker has hired some of the best investment banks from across the world to assist in the IPO exercise. Some of the companies include Kotak Mahindra, Citibank, Morgan Stanley and Company, JP Morgan, and HSBC Ltd. Also, for this particular public market debut, the company has estimated its worth between $18 billion to $20 billion.
Hyundai's Market Position
One cannot but record the sales achievement that Hyundai Motor India registered in May 2024 when it sold as many as 49,151 cars in the domestic market and exported 14,400 cars. Hyundai ended the fiscal year 2024 as the second-largest car manufacturer in India, behind Maruti Suzuki. The company began production in India back in 1998 and opened another production complex in 2008, which highlighted its long-term vision for expanding in India.
Financial Performance and Future Plans
In the past year, Hyundai Motor Group has announced new investments in India totaling around $3.75 billion (five trillion won). For FY23, Hyundai’s Indian subsidiary claimed a net sales of Rs 60,000 crores and profit of Rs 4653 crores, making it the market leader in unlisted car makers.
Conclusion
Hyundai now plans to launch its IPO in India and if this happens, it is expected to make history of India’s largest IPO ever; it is also expected to boost Hyundai’s market base in India as well as its financial muscles. The shift stands an important testimony to Hyundai’s role and relevance in the automobile industry in India and the company’s continued focus and investment on the Indian market.
Hyundai Motor India files draft papers with SEBI for India’s biggest IPO