Hyundai may dilute up to 17.5% stake in IPO; likely to file draft papers today: Report

South Korea's Hyundai Motor is looking to dilute a stake of up to 17.5 per cent in its India entity's initial public offering (IPO), news agency Reuters reported citing sources. The carmaker plans to file draft papers on Friday, the report added. It aims to raise $2.5 billion to $3 billion via the initial share sale.

Hyundai is the country's second-biggest carmaker after Maruti Suzuki India. The company did not respond immediately to a request for comment.

This IPO would be the first by an automaker in India in over 20 years since Maruti Suzuki went public in 2003. 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.

Market regulator Sebi is expected to give its approval within 60-90 days after the draft paper filing, suggesting that Hyundai Motor India's IPO could potentially hit the D-Street in September or October.

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 per cent of domestic sales last month, he added.

(With inputs from Reuters)