Hyundai Motor’s $3 billion IPO- India’s biggest- gets Sebi nod: October launch?

Hyundai Motor India Limited secured markets regulator Sebi’s approval for its around $3 billion IPO after the company filed draft papers in June this year. The IPO will be a India’s biggest ever issue beating the LIC’s $2.7 billion listing in 2022. In June, the auto giant filed draft red herring prospectus (DRHP) with Sebi targeting a valuation of around $18 billion-$20 billion.
The DRHP noted, “The objects of the offer are to carry out the Offer for Sale of up to 142,194,700 Equity Shares of the face value of ₹10 each by the Promoter Selling Shareholder and to achieve the benefits of listing the Equity Shares on the Stock Exchanges. Further, our Company expects that listing of the Equity Shares will enhance our visibility and brand image and provide liquidity and a public market for the Equity Shares in India.”
Hyundai Motors India is being advised by Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital and Morgan Stanley for the issue while law firm Shardul Amarchand Mangaldas is acting as the company counsel, Cyril Amarchand Mangaldas is the banks’ counsel and Latham and Watkins is the international counsel of the company.
The DRHP said, “We have also been India’s largest exporter of passenger vehicles from Fiscal 2005 to the first 11 months of Fiscal 2024, having exported the highest cumulative number of passenger vehicles for the same period, according to the CRISIL Report. Since 1998 and up to March 31, 2024, we have cumulatively sold nearly 12 million passenger vehicles in India and through exports. In CY2023, we were among the top three contributors to HMC’s global sales volumes, and our contribution to HMC’s sales volumes has increased from 15.48% in CY2018 to 18.19% in CY2023.”