India’s biggest initial public offering (IPO) is set to launch soon.
The market regulator, SEBI, has approved Hyundai Motor’s draft red herring prospectus for a massive ₹25,000 crore offer.
This IPO is expected to hit the market in October and could break the record set by LIC’s $2.7 billion listing.
Previously, LIC held the record for the largest IPO in the stock market, amounting to ₹21,008 crore.
Previous Major IPOs in India
Following LIC, One97, the parent company of Paytm, launched an IPO of ₹18,300 crore in November 2021.
Other significant IPOs include Coal India’s ₹15,199 crore IPO in November 2010 and Reliance Power’s ₹11,563 crore IPO in February 2008.
For Hyundai’s IPO, there will only be a sale proposal from its Korean parent company, meaning no new shares will be issued by Hyundai itself.
Market Valuation and Expansion Plans
Hyundai plans to sell about 17% of its equity in this proposal, which is estimated to be valued at around $3 billion.
This would place the overall value of the company at approximately $18 billion.
Currently, Maruti Suzuki is the largest automaker in India, with a market cap of around ₹4 lakh crore.
It is followed by Mahindra & Mahindra at ₹3.8 lakh crore and Tata Motors at ₹3.6 lakh crore.
Before the IPO, Hyundai has announced its expansion plans.
The company aims to increase its annual production in India to one million units by 2025.
It is also focusing on affordable electric cars and plans to manufacture them locally from 2025.
To support this growth, Hyundai has allocated ₹32,000 crore to expand its business in India, which includes opening a new factory in Maharashtra that it purchased from General Motors last year.
