Hyundai Motors IPO: As per the draft red herring prospectus (DRHP) filed in June, the proposed IPO of Hyundai Motor India is exclusively an offer-for-sale (OFS) of 142,194,700 equity shares by the promoter, Hyundai Motor Company, with no fresh issue component. The South Korean parent company has already reduced some of its stake through the OFS route.
Hyundai Motors IPO: Hyundai Motor India Ltd., the Indian subsidiary of the South Korean automaker, has secured regulatory approval to launch its initial public offering (IPO), according to sources familiar with the matter. This marks a historic milestone for the Indian automobile sector, as it will be the first automaker IPO in over two decades, following the listing of Japanese automaker Maruti Suzuki in 2003. As outlined in the draft red herring prospectus (DRHP) filed in June, the proposed IPO is solely an offer-for-sale (OFS) of 142,194,700 equity shares by the promoter, Hyundai Motor Company, with no fresh issue component. The South Korean parent company has already divested some of its stake through the OFS route.
Hyundai Motor India Receives SEBI Nod for IPO; Plans to Divest 15-20% Stake
Since the public issue is entirely an offer-for-sale (OFS), Hyundai Motor India Ltd., which is the second-largest carmaker in India after Maruti Suzuki, will not receive any proceeds from the IPO. Sources indicate that Hyundai Motor India has received confirmation from the Securities and Exchange Board of India (SEBI) approving the IPO. In its draft prospectus, Hyundai Motor India stated that it anticipates the listing of its equity shares will “enhance our visibility and brand image and provide liquidity and a public market for the shares.” Earlier this year, it was reported that the South Korean automaker aimed to raise at least $3 billion through the IPO, potentially diluting its stake by 15-20% and raising between $3.3 billion and $5.6 billion. Hyundai Motor India commenced operations in India in 1996 and currently offers 13 models across various segments. Last month, electric two-wheeler company Ola Electric Mobility was listed on the stock exchange following its Rs 6,145 crore initial public offering.
Financial Information of Hyundai Motor India Limited (Restated Consolidated)
Financial Information of Hyundai Motor India Limited (Restated Consolidated)
Hyundai Motor IPO Peer Comparison:
The table below show peer comparison from DRHP/RHP.
Hyundai Motor India’s recent approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO) marks a significant milestone not only for the company but also for the Indian automobile industry as a whole. As the first major automaker to pursue an IPO in over two decades, following Maruti Suzuki’s listing in 2003, Hyundai’s move highlights the evolving landscape of the automotive sector in India and reflects the growing investor interest in this market.
The proposed IPO, structured entirely as an offer-for-sale (OFS) of 142,194,700 equity shares by the promoter, Hyundai Motor Company, is a strategic decision that will enable the parent company to divest 15-20% of its stake. While Hyundai Motor India will not receive any proceeds directly from this offering, the anticipated increase in visibility and brand image post-listing is expected to create a positive ripple effect across its operations. This move is aligned with the company’s long-term goals to enhance liquidity, attract new investors, and potentially boost sales across its diverse product lineup, which currently features 13 models.
Moreover, this IPO comes at a time when the Indian automotive market is witnessing substantial growth, driven by increasing consumer demand, advancements in electric vehicle technology, and a strong push toward sustainability. By capitalizing on these trends, Hyundai aims to strengthen its competitive position in the market.
The successful execution of this IPO could not only bolster Hyundai’s market presence but also serve as a bellwether for future IPOs in the sector, encouraging other automobile manufacturers to consider public offerings. As the market continues to mature, the ripple effects of Hyundai’s IPO could lead to enhanced corporate governance standards, greater transparency, and an influx of capital that will drive innovation and growth in the Indian automotive industry.
In summary, Hyundai Motor India’s IPO represents a pivotal step in its journey and offers an exciting opportunity for investors. The company is well-positioned to leverage this move to further its growth objectives while contributing to the overall development of the Indian automotive landscape.
