Hyundai India plans record $3 billion IPO, will surpass LIC
Hyundai Motor India, the Indian subsidiary of South Korea's Hyundai Motor Company, has submitted initial public offering (IPO) documents to the Securities and Exchange Board of India (SEBI). The company is aiming to raise approximately $3 billion through this IPO. According to Moneycontrol, Hyundai Motor India is eyeing a valuation of $18 billion to $20 billion. If successful, this would be India's largest-ever IPO, surpassing the previous record set by LIC's $2.7 billion listing in 2022.
IPO to enhance Hyundai's brand image here
The draft red herring prospectus (DRHP) from June 14, reveals that the IPO will involve an offer for the sale of up to 142,194,700 equity shares by the promoter selling shareholder. The DRHP also states that listing these equity shares will enhance Hyundai's visibility and brand image in India. The IPO aims to provide liquidity and a public market for equity shares in India.
Hyundai may consider pre-IPO round amid market conditions
Depending on market conditions and roadshows, Hyundai may consider a pre-IPO round as a de-risking strategy. The IPO is being managed by Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital, and Morgan Stanley. Shardul Amarchand Mangaldas is acting as company counsel while Latham and Watkins are serving as international counsel. The company is yet to disclose the timeline for the IPO.
Market performance and future plans
Hyundai Motor India was India's second-largest carmaker after Maruti Suzuki in FY24 in terms of passenger sales volumes. The company reported revenue of ₹60,000 crore and profits of ₹4,653 crore in FY23, making it the highest among non-listed car manufacturers in India. The Indian market accounted for around 13% of Hyundai's global sales in 2023. The company clocked its highest-ever domestic sales in 2023, crossing the six lakh mark.
