Hyundai Motor IPO: Automaker files DRHP for ₹25,000 crore IPO; Check 5 biggest IPOs in Indian history

Hyundai Motor IPO: Hyundai Motor India Ltd, India’s second-largest car manufacturer, has filed draft papers with market regulator Securities and Exchange Board of India (SEBI) seeking approval to launch its public offer, billed as the largest IPO in the country so far.

According to the Draft Red Herring Prospectus (DRHP) filed by Hyundai Motor India, the carmaker has proposed an Offer for Sale (OFS) of 142,194,700 equity shares of the face value of ₹10 each.

Hyundai Motor India will divest 17.5% of its stake through the OFS route. There is no fresh issue of shares proposed by the maker of Hyundai Creta and Hyundai Venue SUVs.

According to experts, the Hyundai Motor India IPO could be worth $3 billion, or around ₹25,000 crore, which could be the biggest public offer in India in value terms. So far, Life Insurance Corp’s fundraise of nearly ₹21,000 crore was the largest IPO in India.

As Hyundai Motor India Ltd (HMIL) has proposed an OFS, the company will not receive any funds from the IPO and all the funds will go to parent firm Seoul-based Hyundai Motor Company.

Also, HMIL's public offer would be the first IPO by a carmaker in more than two decades since the Maruti Suzuki’s IPO in 2003. Last week, Ola Electric received Sebi’s approval to launch its IPO.

Hyundai Motor India started operations in the country in 1996 and sells 13 models, including Creta, Venue and i20, in the Indian market.

In FY24, Hyundai Motor India sold 6.14 lakh passenger vehicles in India, marking a growth of 8.3% YoY as per data from Society of Indian Automobile Manufacturers (SIAM).

With an estimated size of ₹25,000 crore, Hyundai Motor India IPO could be the largest public offer in India. Here is the list of top five IPOs in India so far.

Life Insurance Corporation of India (₹21,008 crore)

The ₹21,008-crore IPO of insurance giant Life Insurance Corp is the largest public offer so far in India. The state-run insurer launched the IPO from May 4 to 9, 2022. The IPO, which comprised an OFS of 22.14 crore shares, was priced at ₹902 to ₹949 per share.

One97 Communications (₹18,300 crore)

The parent company of payment services provider Paytm, One97 Communications, launched the public offer on November 8, 2021, to raise ₹18,300 crore. This is the second largest offer in the country so far. The issue, priced at ₹2080 to ₹2150 per share, closed on November 10, 2021.

Coal India (₹15,200 crore)

State-run coal miner Coal India Ltd raised around ₹15,200 crore through a public offer in October 2010 which was the largest fundraise by any company at that time. The issue was priced at ₹225 to ₹245 per share.

Reliance Power (₹11,563 crore)

Reliance Power raised around ₹11,563 crore in January 2008 through an IPO. The public issue, the fourth largest IPO so far, was priced at ₹405 to ₹450 per share.

General Insurance Corp of India (₹11,175 crore)

General Insurance Corp of India launched its IPO in October 2017 to raise ₹11,175.84 crore. This remains as the fifth largest fundraise through the IPO route so far in India.

In addition to that SBI Cards and Payment Services (₹10,335 crore), New India Assurance Co (₹9,600 crore), Zomato (₹9,375 crore), DLF (₹9,188 crore), and HDFC Life Insurance (₹8,695 crore) are among the top ten largest IPOs in the country so far.

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