Hyundai Motor India is reportedly planning to file draft papers for a mega IPO with the Securities and Exchange Board of India within the next fortnight.
The listing will be the first by a major car company after Maruti Suzuki’s entry into the bourses in 2003. Maruti Suzuki, which is India’s largest auto company, has a market cap of ₹4.04 lakh crore as per its closing price on the BSE.
A Bloomberg report on Tuesday said Hyundai’s IPO could be one of the largest in Indian history, as it could mobilise close to $2.5 billion, similar to that of Life Insurance Corporation. The insurer had raised around ₹20,600 crore or $2.5 billion through an IPO in 2022.
After filing of the draft red herring prospectus (DRHP), approval from the market regulator is expected within 60-90 days.
This could lead to the IPO being launched by September or October.
Ahead of the proposed IPO, Hyundai has appointed Kotak Mahindra Bank Ltd and Morgan Stanley for the big listing. They will join other investment banks that include HSBC Holdings Plc, Citigroup Inc and JP Morgan Chase & Co.
Earlier reports had flagged a valuation of anywhere between $20 and $30 billion for the auto firm through the IPO.
Hyundai Motor India dispatched 49,151 units in May compared with 48,601 units in May 2023.
Ola Electric
Electric two-wheeler company Ola Electric has received capital markets regulator Sebi’s clearance to raise funds through an initial public offering (IPO).
The proposed IPO is a combination of a fresh issue of equity shares up to ₹5,500 crore and an offer for sale (OFS) of 9.52 crore equity shares by promoters and investors, according to the draft red herring prospectus (DRHP).
The Bengaluru-based company, which filed preliminary IPO papers with Sebi in December 2023, has now obtained its nod to float the public issue, they added.
Going by the draft papers, proceeds from the fresh issue will be used for capital expenditure to be incurred by the subsidiary OCT for the Ola Gigafactory project, payment of debt by subsidiary OET, investment into research and product development, expenditure for organic growth initiatives and general corporate purposes.
Ola Electric manufactures EVs and core EV components such as battery packs and motors at Ola Futurefactory — the manufacturing facility in Krishnagiri.
It introduced its first EV model ‘S1 Pro’ in August 2021 and currently has a portfolio of five scooter models. Revenue from operations jumped to ₹2,630.93 crore last fiscal from ₹373.42 crore a year ago.
