Hyundai Motors India is making headlines as it prepares to launch what is anticipated to be the country’s largest-ever initial public offering (IPO), following approval from the Securities and Exchange Board of India (SEBI). After submitting its draft papers in June 2024, the IPO is expected to hit the market as early as October, according to reports from Businesstoday.in.
The Indian unit of the South Korean automotive giant plans to raise $3 billion, equivalent to approximately Rs 25,000 crore, through this offering. The IPO will be a complete offer-for-sale (OFS), which means that Hyundai Motor Company, the promoter, will sell a portion of its shares to the public. This move is not just a significant step for raising capital but is also seen as a strategic effort to strengthen Hyundai’s market presence and brand visibility in India, one of the world’s largest automotive markets.
By listing on the stock exchange, Hyundai Motors India seeks to enhance its brand image while providing greater liquidity for its shares. The company’s decision to go public comes at a time when it has solidified its position as the second-largest car manufacturer in India in terms of passenger vehicle sales, trailing only behind Maruti Suzuki in the fiscal year 2023-24. The upcoming IPO is expected to boost its visibility and further solidify its competitive position in the Indian automotive sector.
Handling this large-scale IPO are several leading financial institutions, including Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital, and Morgan Stanley. These banks serve as advisors on the transaction, ensuring that the process is executed smoothly and successfully. Hyundai Motors India has also enlisted the services of Shardul Amarchand Mangaldas as its legal counsel, while Cyril Amarchand Mangaldas will represent the banks involved in the process. On the international front, Latham and Watkins will provide legal counsel, and KFin Technologies has been appointed as the registrar for the issue.
The anticipated IPO is expected to be a major milestone for Hyundai Motors India, not only because of its size but also because of its significance in the Indian stock market. The funds raised will likely be used to fuel Hyundai's future growth plans, including expanding its operations, improving product offerings, and potentially investing in sustainable technologies. It also signals the company’s commitment to maintaining a strong presence in the Indian market, where it has already established itself as a major player.
As the company prepares to enter the final stages of its IPO launch, investors and analysts are eagerly awaiting more details regarding the share price and the exact launch date. The upcoming offering is poised to be one of the most significant events in recent memory for India’s stock market, with far-reaching implications for the automotive industry and the broader market.
