Hyundai likely to file DRHP with SEBI for IPO on June 14: Reports

Investors are keeping a keen watch on the recent primary market activities with many big ticket initial public offerings (IPOs) expected to be launched in coming months. Among the big companies going public, Hyundai Motor India Limited has garnered a lot of interest over its proposed IPO. Now, reports suggest that the South Korean carmaker is planning to file its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) today, June 14.

The Korean carmaker is likely to file the DRHP by late afternoon, as per reports which cited sources privy to the matter. The public issue of the automotive giant has been in the news for months and is likely to impact the financial markets in India in a significant way, according to reports. The public issue is likely to be one of the largest IPOs so far in India.

Hyundai is likely to raise nearly $3 billion through the sale of its 17.5% stake in its Indian unit through an Offer For Sale (OFS) according to a report by news agency Reuters.

After the DRHP is filed, SEBI is likely to take two months to approve the public issue, post which the company will be able to launch the public issue. Banks such as Kotak Mahindra, Citibank, Morgan Stanley, JP Morgan, and HSBC have been roped in by Hyundai to carry out the public issue smoothly, according to reports.

Hyundai Motor IPO is likely to be the first public offer by an automotive company in over twenty years after Maruti Suzuki India Limited’s (MSIL) launched its public issue in 2003. India is among the largest revenue creators for Hyundai, following the United States and South Korea, according to reports.

Hyundai’s decision to opt for a public offer in India is likely to be an attempt to capitalise on the automotive giant's market potential in India.

Earlier in April, 2024, the Executive Chairman of the Korean carmaker Euisun Chung and Chang Jae-Hoon, Chief Executive Officer, visited India and held meetings related to the public issue, according to reports. Hyundai has been a part of the Indian car market since 1997, with manufacturing facilities located in Tamil Nadu.

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