Hyundai Motor India Ltd, the Indian arm of South Korean automaker Hyundai, is expected to launch its much-awaited Rs 25,000-crore initial share-sale for public subscription on October 14, people familiar with the development said on Thursday.
This would be the largest initial public offering (IPO) in India after LIC’s initial share sale of Rs 21,000 crore.
South Korean auto giant has received final observations from the Indian capital market’s watchdog. Hyundai’s Indian arm is eyeing to raise $3 billion, around Rs 25,000 crore through its initial stake sale. The issue is entirely an offer-for-sale (OFS) by the promoter Hyundai Motor Company.
This development marks a significant milestone for the Indian industry, as it is the first automaker’s initial share sale in over two decades, following Japanese automaker Maruti Suzuki’s listing in 2003.
Hyundai Motors India expects that listing of the equity shares will enhance its visibility and brand image and provide liquidity and a public market for the equity shares in India. Hyundai Motor India was India’s second largest carmaker after Maruti Suzuki in FY24 in terms of passenger sales volumes.
Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital and Morgan Stanley are the lead managers 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. KFin Technologies is the registrar for the issue.