Hyundai Motor India gets SEBI approval to float IPO; 6 key things to know

The company submitted its draft papers in June 2024 and the IPO might hit the markets in October, Business Today reported citing sources.

Here are six things you need to know about Hyundai Motor India IPO 2024

• This is significant for the Indian automotive industry as Hyundai will become the first automaker to launch an IPO in more than two decades after Maruti Suzuki’s IPO in 2003.

• The proposed IPO is entirely an Offer-for-Sale (OFS) of 142,194,700 equity shares by promoter Hyundai Motor Company, with no fresh issue component, according to the draft red herring prospectus (DRHP) filed in June.

• Hyundai, its South Korean parent company, is diluting some of the stake through the OFS route.

• Since the public issue is completely an OFS, Hyundai Motor India Ltd, which is the second largest carmaker in India after Maruti Suzuki India, will not receive any proceeds from the IPO.

• Hyundai Motor India has received approval for the IPO through an email from the Securities and Exchange Board of India (SEBI), people privy to the developments stated.

• Reportedly, Shardul Amarchand Mangaldas will be the company’s counsel, Cyril Amarchand Mangaldas will represent the banks (Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital and Morgan Stanley), Latham and Watkins will be its legal counsel internationally and KFin Technologies will be the registrar for its IPO.

Enhanced visibility for the brand

Hyundai Motor India began operations in India in 1996 and currently offers 13 models across various segments.

The company stated that the listing of its equity shares will enhance its visibility and brand image along with providing liquidity and a public market for the shares.

Back in February, sources had confirmed that the company is looking to raise at least $3 billion, or around ₹25,000 crore, through an IPO. It was further reported that the South Korean automaker might dilute a 15-20 percent stake to raise funds in the range of $3.3-5.6 billion.