South Korean auto giant Hyundai Motor Co’s Indian arm Hyundai Motor India Limited is planning to tap the Indian market for a massive $3 billion fundraising through an IPO (initial public offer).
The auto major has reportedly filed draft papers with the Indian market regulator SEBI (Securities and Exchange Board of India) for the proposed IPO at a targeted valuation between $18 billion to $20 billion, Moneycontrol reported, citing unnamed sources.
If the listing plans fructify, the Hyundai Motor India share issue would be India In’’s biggest-ever IPO and beat the earlier record set by state-owned LIC’s $2.7 bn listing in 2022.
“The objects of the offer are to carry out the Offer for Sale of up to 142,194,700 equity shares of the face value of Rs 10 each by the promoter selling shareholder and to achieve the benefits of listing the equity shares on the stock exchanges,” the Moneycontrol report said, citing the draft red herring prospectus (DRHP) by the Korean auto major.
If required and depending on the roadshows and market conditions, the firm might explore a pre-IPO round at a later stage as a de-risking strategy, the report said.
Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital and Morgan Stanley are the i-banks advising on the transaction, with law firm Shardul Amarchand Mangaldas acting as the company counsel and Latham and Watkins acting as the international counsel, the report said.
Responding to media reports, Hyundai Motor Co said in a recent official statement to the Korean Stock Exchange that as a global company, it is constantly reviewing various activities, including listing overseas subsidiaries, to increase corporate value, but nothing has been confirmed to date.
Hyundai Motor Group’s Executive Chair Euisun Chung’s visit to India last month, said to review the firm’s mid to long -term mobility strategies, has added to talks about the company’s impending listing plans.
Hyundai Motor India Limited was India’s second largest carmaker after Maruti Suzuki in FY24 in terms of passenger sales volumes.
The share price of rival Maruti Suzuki India has risen by 24.35 percent in the last six months.
India is a significant market that accounted for around 13 percent of Hyundai’s global sales in 2023, with its popular models i20, Verna, Creta, Aura and Tucson among the largest selling car models in the Indian market.
The India unit clocked the highest-ever domestic sales in 2023, crossing the 600,000 mark.
Follow us on
