Hyundai India’s IPO Nears Launch as SEBI Gives Green Light

South Korean automotive giant Hyundai Motor Co.’s Indian subsidiary, Hyundai Motor India Limited, is poised to launch one of the largest initial public offerings (IPOs) in Indian history. The market regulator, the Securities and Exchange Board of India (SEBI), has granted its approval for the approximately $3 billion IPO following the submission of draft documents in June.

Sources familiar with the matter revealed that SEBI’s final observations have been received, paving the way for a potential October launch of the IPO. If successful, this offering, which will involve the sale of shares by the promoter, would surpass the previous record set by Life Insurance Corporation of India (LIC) in 2022, valued at $2.7 billion.

Hyundai Motor India filed its draft red herring prospectus (DRHP) in June, targeting a valuation between $18 billion and $20 billion. Hyundai IPO aims to raise funds through the sale of up to 142,194,700 equity shares by the promoter. The company expects that listing on Indian stock exchanges will enhance its visibility and brand image and provide liquidity for its shares.

Hyundai Motor India, the second-largest carmaker in India after Maruti Suzuki in terms of passenger sales volume, has seen its rival’s share price surge by 20.25% in the past year. Maruti Suzuki boasts a market capitalisation of approximately $48 billion.

A consortium of investment banks, including Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital, and Morgan Stanley, is advising on the IPO. Shardul Amarchand Mangaldas is the company counsel, while Cyril Amarchand Mangaldas and Latham and Watkins are acting as legal counsel for the banks and international counsel, respectively.

Hyundai Motor India’s Indian Operations

The company offers a diverse range of passenger vehicles, including sedans, hatchbacks, SUVs, and electric vehicles. It also manufactures components such as transmissions and engines. Since 2009, Hyundai Motor India has consistently held the position of the second-largest automotive original equipment manufacturer (OEM) in India’s passenger vehicle market based on domestic sales volume.

As the stock listing approaches, Hyundai Motor Share Price will be in focus, marking a new chapter for investors post-IPO.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.