Hyundai Motor India to launch Rs 25,000 crore IPO on October 14
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Hyundai Motor India Ltd., the Indian subsidiary of the South Korean automotive giant, is gearing up for a significant milestone. The company is set to launch its highly anticipated Rs 25,000 crore initial public offering (IPO) on October 14, as per sources familiar with the matter. This IPO is expected to be the largest in India since the Life Insurance Corporation’s (LIC) Rs 21,000 crore offering.
The IPO will be entirely an offer-for-sale (OFS) by Hyundai Motor Company, the promoter. The company aims to raise $3 billion (approximately Rs 25,000 crore) through this stake sale. This development is particularly noteworthy as it marks the first initial share sale by an automaker in India since Maruti Suzuki’s listing in 2003.
Hyundai Motor India has been a major player in the Indian automotive market, ranking as the second-largest carmaker in terms of passenger sales volumes in FY24, trailing only Maruti Suzuki. The listing is expected to enhance Hyundai’s visibility and brand image in India, while also providing liquidity and a public market for its equity shares.
The IPO will be managed by a consortium of leading financial institutions, including Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital, and Morgan Stanley. Legal advisories for the transaction will be provided by Shardul Amarchand Mangaldas for the company, Cyril Amarchand Mangaldas for the banks, and Latham and Watkins for international counsel. KFin Technologies will serve as the registrar for the issue.
This IPO is part of a series of major public offerings expected to hit the Indian market before the end of 2024, including those from companies like Swiggy and NTPC Green. The launch of Hyundai Motor India’s IPO signifies a significant moment for the Indian automotive and financial sectors.
Disclaimer: This news story is provided for informational purposes only and should not be considered as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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