Hyundai Motor India Ltd (HMIL), the Indian subsidiary of South Korean automaker Hyundai, has submitted preliminary documents to Sebi for launching an initial public offering (IPO). If approved, this IPO would become the largest in India, exceeding LIC’s Rs 21,000 crore share-sale.
According to the draft red herring prospectus (DRHP), the IPO will be an offer for sale (OFS) of 142,194,700 equity shares by Hyundai Motor Company, with no new shares being issued.
Sources revealed in February that Hyundai Motor Company aims to raise at least USD 3 billion (approximately Rs 25,000 crore) through the IPO by potentially diluting a 15-20% stake in HMIL.
As the IPO is entirely an OFS, HMIL, India’s second-largest carmaker after Maruti Suzuki India, will not receive any proceeds from the IPO.
This move signifies a major milestone for the Indian automotive industry, being the first IPO by a car manufacturer in over two decades, following Maruti Suzuki’s 2003 listing.
Earlier this week, electric two-wheeler company Ola Electric also received Sebi’s approval for its IPO.
In its draft documents, HMIL stated that listing the equity shares would “enhance our visibility and brand image and provide liquidity and a public market for the shares.”
