Hyundai Motor India to launch ₹25,000 crore IPO next week
Hyundai Motor India is gearing up for a mega initial public offering (IPO), worth an estimated ₹25,000 crore. As per Reuters, the IPO will open for subscriptions next week. The shares are anticipated to be priced between ₹1,865 and ₹1,960. The South Korean automaker's Indian subsidiary will issue 14.22 crore existing shares through an offer for sale (OFS), according to a regulatory filing by its parent company, Hyundai Motor. No new shares will be issued in this IPO.
Hyundai's IPO could surpass LIC's record
The upcoming IPO from Hyundai Motor India could break the record as India's largest-ever IPO. It is expected to overtake the ₹21,000 crore listing of Life Insurance Corporation (LIC) in 2022. The company had filed its draft red herring prospectus (DRHP) in June with the Securities and Exchange Board of India (SEBI), aiming for a valuation of $18-20 billion.
Hyundai's IPO aims to boost visibility and liquidity
Hyundai aims to list its shares on Indian stock exchanges and retain an 82.5% equity stake in Hyundai Motor India post-IPO. The company wants to increase its visibility and brand image in the domestic market while offering liquidity to existing shareholders. In FY24, Hyundai India was the second-largest carmaker after Maruti Suzuki in terms of passenger sales volumes. The IPO will mark a historic return for a car manufacturer to the Indian stock market, since Maruti Suzuki's listing in 2003.
