Hyundai Motor India Set to Launch ₹25,000 Crore IPO on October 14

Hyundai Motor India Ltd, the Indian arm of South Korean automotive giant Hyundai, is gearing up for a major event in the financial markets with its initial public offering (IPO) scheduled for October 14, 2024. This ₹25,000 crore IPO is anticipated to be the largest in India since the ₹21,000 crore IPO of LIC, marking a significant milestone in the Indian automotive sector.

Approximately ₹25,000 crore

According to the Draft Red Herring Prospectus (DRHP) filed in June, Hyundai’s IPO is structured entirely as an Offer-for-Sale (OFS) of 142,194,700 equity shares by its promoter, Hyundai Motor Company. Importantly, this means that there will be no fresh issue of shares, and the company will not receive any proceeds from the IPO. The South Korean parent aims to raise at least USD 3 billion (approximately ₹25,000 crore) through this initiative.

This IPO is particularly noteworthy as it represents the first initial share sale by an automaker in over two decades, following Maruti Suzuki’s listing in 2003. As the second largest car manufacturer in India, Hyundai Motor India has positioned itself as a key player in the market, offering 13 models across various segments.

SEBI granted approval for the IPO

The Securities and Exchange Board of India (SEBI) granted approval for the IPO on September 24, paving the way for its launch. Hyundai anticipates that this public listing will enhance its visibility, brand image, and liquidity, providing a more accessible market for its shares.

The timing of Hyundai’s IPO is strategic, coinciding with a surge of interest in the primary market. So far this year, 62 companies have collectively raised approximately ₹64,000 crore, reflecting a 29% increase from the ₹49,436 crore mobilized by 57 firms throughout 2023. This robust momentum in the IPO market is fueled by favorable macroeconomic conditions, strong inflows into domestic mutual funds, and a willingness among investors to explore new opportunities.

As Hyundai Motor India prepares for its IPO, industry watchers eagerly anticipate how this will impact the automotive landscape and the broader Indian market.