India’s largest IPO draft paper of $3 billion filed by Hyundai Motor India
Hyundai Motor Co. is a South Korean car maker, and its subgroup Hyundai Motor India Limited has been reported to have drawn up the draft papers with the SEBI for the IPO of about $3 billion at a market capitalization of between $18 billion and $20 billion, according to some informed sources.
This deal would set a new record as the biggest IPO and offer for sale by the promoter in Indian markets, and it would override the previous record of $2.7 that was owned by the state-owned Life Insurance Corporation of India Ltd. (LIC), which got listed in the year 2022.
“The main objective of this offer is to facilitate the sale of equity shares of 142,194,700 of Rs.10 each by the promoter selling shareholder. It also provides the benefits of listing the shares on the Stock exchanges to the company”, says the source.”, says the source.
The source also added that the listing of the equity shares will increase and benefit the company’s visibility and brand image, and it will provide the Indian market with the growth it needs and also provide liquidity and a public market for the equity shares.
As an approach to the lower risk, the company can opt for a pre-IPO round at a later stage for further funding, if necessary, and depending on roadshows and market conditions, sources said.
Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital, and Morgan Stanley are the i-banks that are managing the transaction, while Shardul Amarchand Mangaldas is acting as the company counsel as well as the international counsel being taken by Latham Watkins.
In the context of the volumes of passenger cars in FY24, Hyundai Motor India Limited is ranked second in the car manufacturing industry in India, next to Maruti Suzuki. Maruti Suzuki India has a market capitalization of Rs.4,00,000 crores ($48 Bn) making it the market leader.
At the end of FY 2023, the company had revenues and profits of Rs.60000 crore and Rs.4653 crore respectively. India also contributed 13% to its sales in 2023, making it one of the company’s key markets. Some of the car models of this firm in India include the i20, Verna, Creta, Aura, and Tucson, among others.
Consequently, the India unit recorded the highest domestic sales of motorcycles in the year 2023, which was over six lakh.
