DBT Bureau
Bhubaneswar, June 17, 2024
Hyundai Motor India Ltd, the Indian subsidiary of South Korean auto giant Hyundai Motor Co., has filed draft papers with market regulator Sebi to launch an initial public offering (IPO) aiming to raise around $3 billion.
The public issue targets a valuation in the range of $18 billion to $20 billion for the global carmaker’s Indian subsidiary. If this IPO sails through, this would mark India Inc’s largest-ever IPO, surpassing the previous record set by LIC’s $2.7 billion 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,” said the June 14 draft red herring prospectus (DRHP).
“Further, our Company expects that listing of the equity shares will enhance our visibility and brand image and provide liquidity and a public market for the equity shares in India,” the DRHP added.
Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital, and Morgan Stanley are the investment banks advising on the transaction. The company’s legal counsel is Shardul Amarchand Mangaldas, with international legal support provided by Latham and Watkins.
In FY24, Hyundai Motor India Ltd ranked as India’s second-largest carmaker by passenger sales volume, following Maruti Suzuki. Maruti Suzuki, the market leader, currently has a market capitalization of approximately Rs 4 lakh crore (around $48 billion).
According to data filed with the regulator, Hyundai’s India division posted Rs 60,000 crore in revenue and Rs 4,653 crore in profits by the end of FY23, making it the top non-listed car manufacturer in the country.
India constituted about 13% of Hyundai’s global sales in 2023. Some of Hyundai’s popular car models in India include i20, Verna, Creta, Aura, and Tucson. In 2023, the India unit recorded its highest-ever domestic sales, surpassing six lakh units.
