If you are interested in investing in IPOs, there’s exciting news for you. The South Korean company, Hyundai Motor, is preparing to launch the IPO of its Indian unit.
The company has submitted its draft papers to the Securities and Exchange Board of India (SEBI) for this purpose.
According to Reuters, Hyundai filed its Draft Red Herring Prospectus (DRHP) with SEBI on Saturday, June 15, 2024. The company plans to sell a 17.5 percent stake through this IPO.
Raising Rs 25,000 Crore from the Market
As reported by Moneycontrol, Hyundai Motor, one of India’s leading automotive companies, aims to raise a total of $3 billion (approximately Rs 25,000 crore) through this IPO.
If successful, this will be the largest IPO ever in India, surpassing the Life Insurance Corporation of India’s IPO of Rs 21,008 crore in 2022.
Other notable IPOs include One97 Communications (Paytm) raising Rs 18,300 crore and Coal India raising Rs 15,199 crore.
IPO Details and Timeline
According to Moneycontrol, the IPO will be conducted entirely through an Offer for Sale (OFS), meaning no new shares will be issued.
The DRHP indicates that Hyundai Motor will sell 142,194,700 equity shares, each with a face value of Rs 10. The company is also considering a pre-IPO round before the official launch.
This will be the largest IPO from an automobile company in nearly two decades, following Maruti Suzuki’s IPO in 2003.
The IPO of the electric two-wheeler company Ola has also recently received SEBI’s approval. Citi India, JP Morgan India, and Kotak Mahindra Capital will manage Hyundai’s IPO.
Expected Launch Date
After filing the DRHP, it typically takes 60 to 90 days to receive approval from SEBI. Therefore, the Hyundai Motor IPO is expected to launch by September or October 2024.
