Hyundai Motor India has received approval from the Securities and Exchange Board of India (SEBI) to move forward with its highly anticipated initial public offering (IPO). The South Korean automaker is gearing up to raise around $3 billion (approximately ₹25,000 crore), positioning it as the largest IPO in Indian history, surpassing Life Insurance Corporation of India’s (LIC) $2.7 billion IPO in 2022.
Hyundai’s Market Strategy
Hyundai’s Indian unit, the country’s second-largest carmaker after Maruti Suzuki, plans to strengthen its market presence with the funds raised from the IPO. The company aims to reclaim market share from rising domestic competitors, such as Tata Motors, by expanding its SUV lineup and introducing new models, including its first India-made electric vehicle (EV) early next year.
In addition to the EV launch, Hyundai plans to introduce two gasoline-powered models tailored for the Indian market by 2026. These moves are aimed at bolstering its position in India’s rapidly evolving auto market, which is seeing increasing demand for SUVs and electric vehicles.
Record-Breaking IPO
If all goes according to plan, Hyundai’s IPO will break records as the largest-ever public offering in India. The offering will be structured as an Offer for Sale (OFS), where the promoter will sell equity shares to the public. The automaker filed its draft red herring prospectus (DRHP) in June, targeting a valuation between $18 billion and $20 billion.
Hyundai has been a significant player in India’s auto market, selling nearly 12 million passenger vehicles domestically and through exports since 1998. The company has also been India’s top exporter of passenger vehicles since 2005, with a strong presence in hatchbacks, sedans, SUVs, and electric vehicles.
Advisory and Legal Teams
A team of prominent investment banks and law firms has been assembled to handle the IPO. Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital, and Morgan Stanley are advising on the transaction, while Shardul Amarchand Mangaldas is acting as Hyundai’s legal counsel.
The IPO is expected to hit the market in October 2024, with investors and analysts eagerly watching for the outcome, which could reshape the competitive landscape of India’s automotive sector.
Stay tuned to ibizznews.com for further updates on Hyundai’s record-breaking IPO launch.
