Hyundai Motor India Ltd, the Indian arm of South Korean auto maker Hyundai, is expected to launch its much-awaited ₹25,000-crore initial share-sale for public subscription on October 14, people familiar with the development said on Thursday.
This would be the largest initial public offering (IPO) in India after LIC’s initial share sale of ₹ 21,000 crore.
According to the Draft Red Herring Prospectus (DRHP) filed in June, Hyundai Motor India’s proposed IPO is entirely an offer-for-sale (OFS) of 142,194,700 equity shares by promoter Hyundai Motor Company, with no fresh issue component.
Sources had previously stated that the South Korean auto maker is looking to raise at least $3 billion (about ₹25,000 crore) through an initial share sale.
This development marks a significant milestone for the Indian industry, as it is the first auto maker’s initial share sale in over two decades, following Japanese auto maker Maruti Suzuki’s listing in 2003.
The South Korean parent is diluting some of the stake through the OFS route. Since the public issue is completely an OFS, Hyundai Motor India Ltd, which is the second largest car maker in India after Maruti Suzuki India, will not receive any proceeds from the IPO.
The auto maker received approval from the Securities and Exchange Board of India (Sebi) on September 24 to float its IPO.
In its draft papers, Hyundai Motor India said it expects the listing of the equity shares “will enhance our visibility and brand image and provide liquidity and a public market for the shares”.
In February this year, sources confirmed that the South Korean auto maker is planning to garner at least $3 billion through an IPO. It may dilute a 15-20 per cent stake to raise funds in the range of $3.3-5.6 billion.
Hyundai Motor India commenced operations in India in 1996 and currently sells 13 models across segments.
In September, electric two-wheeler company Ola Electric Mobility got listed on the bourses after successful completion of its ₹6,145 crore initial share sale.
The IPO launch comes at a time when the primary market is experiencing strong interest from both issuers and investors across various sectors.
