Hyundai Motor India IPO: South Korean auto giant Hyundai Motor Co’s Indian subsidiary, Hyundai Motor India Limited, has filed draft papers with market regulator Sebi to raise approximately $3 billion through an initial public offering (IPO) at a targeted valuation of $18 billion to $20 billion, sources revealed to Moneycontrol on the condition of anonymity.
If successful, this IPO, a pure Offer for Sale (OFS) by the promoter, would surpass the $2.7 billion IPO of state-owned LIC in 2022, making it the largest in India’s corporate history.
According to the draft red herring prospectus (DRHP) dated July 14 and reviewed by Moneycontrol, the IPO aims to sell up to 142,194,700 equity shares of Rs 10 each. The listing is expected to enhance the company’s visibility, brand image, and provide liquidity and a public market for its shares in India.
Sources also indicated that Hyundai might consider a pre-IPO round depending on market conditions and roadshow feedback as a risk mitigation strategy.
Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital, and Morgan Stanley are advising on the transaction, with Shardul Amarchand Mangaldas as the company counsel and Latham and Watkins as the international counsel.
In FY24, Hyundai Motor India Limited was the country’s second-largest carmaker by passenger sales volume, following Maruti Suzuki. The share price of rival Maruti Suzuki India has increased by 24.35% in the past six months, with a market cap of approximately Rs 4,00,000 crore ($48 billion).
Hyundai Motor India ended FY23 with revenue of Rs 60,000 crore and profits of Rs 4,653 crore, the highest among non-listed car manufacturers in India. In 2023, India accounted for around 13% of Hyundai’s global sales, with popular models including the i20, Verna, Creta, Aura, and Tucson. The company also achieved its highest-ever domestic sales, surpassing the six-lakh mark.
The Economic Times first reported Hyundai’s India listing plans on February 5. Following media reports, Hyundai Motor Co stated to the Korean Stock Exchange on February 7 that it continuously reviews various activities, including listing overseas subsidiaries, to increase corporate value, but no final decision had been made.
Hyundai Motor Group’s Executive Chair Euisun Chung visited India last month to review the company’s mid to long-term mobility strategies.