Hyundai Motor India Gears Up For IPO; Files Draft Papers For ₹25,000 Crore

Hyundai Motor India Limited (HMIL), the second-largest carmaker in India, gears up to make waves in the Indian stock mark with a massive initial public offering (IPO).

According to various reports, the company is planning to offer up to 142.2 million equity shares, which represents 17.5 per cent of its post-offer paid-up equity share capital.

Moreover, this could likely set a new record for the largest IPO in India.

IPO Details

Shares Offered: 142.2 million equity shares

Percentage of Stake: 17.5 per cent of post-offer paid-up equity share capital

Estimated Funds to be Raised: USD 2.5 billion to USD 3 billion

Estimated Valuation: USD 25 billion to USD 30 billion

Furthermore, if it is successful, the HMIL IPO could surpass the previous record set by the Life Insurance Corporation of India (LIC), which raised USD 2.46 billion in May 2022.

Key Players

According reports, the IPO will be managed by several leading financial institutions such as Kotak Mahindra Capital, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), JP Morgan India, Morgan Stanley India.

Regulatory Filing and Approval

HMIL has filed its draft red herring prospectus (DRHP) with the market regulator SEBI (Securities and Exchange Board of India).

The DRHP emphasises the company's plans and the purpose of the offer, which is to execute the Offer for Sale and to gain the benefits of listing its equity shares on Indian stock exchanges.

About the company

Following Maruti Suzuki, Hyundai Motor India is the second-largest carmaker in India and has a has a strong presence in the Indian market:

First Manufacturing Plant: Established in 1998

Second Manufacturing Plant: Established in 2008

Sales Growth: 7 per cent YoY growth in May with 63,551 units sold

Over the past year, Hyundai Motor Group has announced new investment plans in India, totaling approximately USD 3.75 billion (five trillion won).