Hyundai IPO
Hyundai Motor India IPO gets SEBI approval, share sale likely in October: Report
Mumbai/IBNS: Hyundai Motor India, a wholly-owned subsidiary of the South Korean-headquartered Hyundai Motor Company, has reportedly received approval from the Indian regulatory body for securities and commodity market, the Securities and Exchange Board of India (SEBI), to proceed with its initial public offering (IPO), reports said.
According to reports, the automaker aims to raise $3 billion (approximately Rs 25,000 crore) through the IPO, valuing the company at around $20 billion.
If successful, this would be the biggest ever IPO in India's history, surpassing the Rs 21,000 crore share sale by Life Insurance Corporation of India (LIC).
This marks a significant milestone, as it would be the first IPO from an automaker in India in over two decades, following Maruti Suzuki’s listing in 2003, as per reports.
India is Hyundai’s third-largest market in terms of revenue, after the United States and South Korea.
The company has already invested $5 billion in India and plans to invest an additional $4 billion over the next decade, according to a Reuters report.
Moneycontrol reported on Tuesday (Sept. 24) that SEBI’s final approval has been granted, and the record-breaking IPO is expected to launch in October.
The deal is being advised by investment banks including Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital, and Morgan Stanley.
Legal advisory is being provided by Shardul Amarchand Mangaldas for Hyundai, Cyril Amarchand Mangaldas for the banks, and Latham and Watkins as the international counsel, reports said.
Hyundai Motor India, which started operations in 1996, currently offers 13 models across different segments.
In August last year, the company reported a 12 percent year-on-year (YoY) increase in total sales, reaching 71,435 units.
However, domestic vehicle dispatches to dealers dropped by 8 percent to 49,525 units, while exports saw a 22 percent decline to 13,650 units compared to the same period last year.
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