In what could be India's biggest-ever IPO, South Korea's Hyundai Motor is looking to offload up to 17.5 percent stake in its initial public offering (IPO) of its India unit, according to draft papers filed with the Securities and Exchange Board of India (SEBI) on June 15. The carmaker aims to raise $2.5-3 billion via the initial share sale.
Hyundai Motor will offer up to 142 million shares for sale in the IPO from a total of 812 million, according to the filing with the Securities and Exchange Board of India (SEBI), Reuters reported.
Hyundai will not issue new shares in the IPO, which will involve its South Korean parent selling part of its stake in the wholly-owned unit to retail and other investors via a so-called "offer for sale" route, it added.
This IPO would be the first by an automaker in India in over 20 years since Maruti Suzuki went public in 2003. Hyundai is the country's second-biggest carmaker after Maruti Suzuki India.
India is Hyundai's third-largest revenue generator after the US and South Korea. It is opting for an IPO to capitalise on the growing market potential in India.
Hyundai has roped in investment banks such as Kotak Mahindra, Citibank, Morgan Stanley, JP Morgan, and HSBC to smoothen its entry into the public markets and make it successful.
In terms of sales, the auto company has reported 7 per cent year-on-year (YoY) increase in total sales at 63,551 units in May as against 59,601 units in during the same period last year.
"We have maintained a healthy total sales volume in May 2024, despite a week-long routine bi-annual maintenance shutdown at our Sriperumbudur factory," HMIL COO Tarun Garg said.
SUVs continue to be a growth driver for HMIL, accounting for more than 67 percent of domestic sales last month, he added.
In April this year, Hyundai Motor India announced plans to introduce five new electric vehicles (EVs) by 2030 bringing forward its “locally tailored” plans for the sector by two years. The company earlier planned to introduce five EVs by 2032. The automaker's Chennai plant will roll out the company’s first electric SUV by 2024 end.
Hyundai India and Kia recently signed an agreement with Exide Energy Solutions to pursue the local production of batteries for EVs.
At present, Hyundai Motor India sells two EV models in India -- IONIQ5 and KONA Electric priced around Rs 46 lakh and Rs 24 lakh (ex-showroom Delhi), respectively.
Last year, the company had announced its plans to launch more electric vehicles under the Hyundai and Kia brands in India.
It is reportedly planning to invest Rs 20,000 crore over the next 10 years in Tamil Nadu to modernise vehicle platforms and expand its presence in the country’s fast-evolving electric vehicle segment.