According to the draft red herring prospectus, Hyundai Motor India Ltd. plans to offer 17.5%, or 142.2 million shares. The IPO will not include any new shares from the unit, with all proceeds directed to the parent firm.
According to Bloomberg News, Hyundai aims to raise approximately $2.5 billion through the IPO, targeting a listing by year-end. If successful, this would position it among India’s largest IPOs, comparable to Life Insurance Corp. of India’s $2.5 billion offering in 2022.
According to sources familiar with the matter, Hyundai aims for a valuation up to $25 billion. Hyundai Motor India ranks as the country’s second-largest automaker by sales. The draft prospectus indicates nearly 80% of its revenue stems from domestic car sales.
According to the draft prospectus, anchor investors will be offered as many as 42.66 million shares. Qualified Institutional Buyers, including the anchors, will be sold as much as half of the offering. At least 35% will be available for retail buyers, and the remainder will go to non-institutational investors.
Hyundai Motor India reported revenue of 521.58 billion rupees in the nine months ended December, according to the filing. For the year ended March 2023, it had a revenue of 603.1 billion rupees.
Hyundai’s advisers for the share sale are Kotak Mahindra Bank, Citigroup Inc., HSBC Holdings Plc, JP Morgan Chase & Co, and Morgan Stanley, according to the draft prospectus.
The Hyundai India IPO filing represents a pivotal moment in Hyundai’s long-term strategy for India.
Moreover, the IPO could attract significant investor interest, marking a milestone in Hyundai’s journey to deepen its roots in India’s competitive automotive sector.
Additionally, it underscores India’s growing appeal as a pivotal investment destination.
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