Hyundai Motor India IPO gets SEBI approval, say reports; share sale likely in October

The South Korean automaker plans to raise $3 billion (around ₹25,000 crore) at a roughly $20 billion valuation, as per reports. 

The company's initial public offering (IPO), if it goes through, would be the largest in India, surpassing LIC's share sale of ₹21,000 crore. This development marks a significant milestone for the Indian industry, as it is the first automaker to go for an initial share sale in over two decades, after Japanese automaker Maruti Suzuki's listing in 2003.

India is the third-biggest revenue generator globally for Hyundai after the US and South Korea, and it has already invested $5 billion in the country with commitments to pump in another $4 billion over the next decade, as per a Reuters report. 

"The regulator's final observations have come in. This record-breaking IPO is likely to be launched in October," Moneycontrol reported on Tuesday (September 24), citing sources. 

Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital, and Morgan Stanley are the investment banks advising on the transaction, with law firm Shardul Amarchand Mangaldas acting as the company counsel, Cyril Amarchand Mangaldas as the banks' counsel, and Latham and Watkins acting as the international counsel.

Hyundai Motor India commenced operations in India in 1996 and currently sells 13 models across segments.

Hyundai Motor India sales in August

Hyundai Motor India reported a 12% year-on-year (YoY) increase in total sales at 63,175 units in August. The company sold a total of 71,435 units in August 2023, the automaker said in a statement.

Domestic dispatch of vehicles to dealers saw an 8% dip to 49,525 units last month from 53,830 units in the year-ago period.

Exports declined 22% last month to 13,650 units, as compared to 17,605 units in the year-ago period.