Hyundai Motor India Limited, the Indian subsidiary of the South Korean automotive giant, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) aiming to raise approximately ₹25,000 crore ($3 billion).
If approved by the regulator, this IPO will become the largest in India, following the state-owned Life Insurance Corporation of India's (LIC) $2.7 billion listing in 2022.
The DRHP outlines that the purpose of the IPO is to conduct an Offer for Sale of up to 142,194,700 equity shares, each with a face value of ₹10, by the promoter-selling shareholder. The company anticipates that listing its equity shares will boost visibility and brand image while providing liquidity and establishing a public market for the shares in India.
Hyundai Motor India has enlisted the expertise of global investment banks, including Kotak Mahindra, Citibank, Morgan Stanley, JP Morgan, and HSBC, to facilitate its market entry.
In May, Hyundai Motor India reported a 7% year-on-year growth in total sales, reaching 63,551 units. For the fiscal year 2024, the company was the second-largest car manufacturer in India by passenger sales volume, trailing only Maruti Suzuki.
Hyundai Motor India began its operations with the establishment of its first manufacturing plant in 1998, followed by a second plant in 2008. Over the past year, Hyundai Motor Group has announced investment plans in India amounting to approximately five trillion won ($3.75 billion).