Hyundai Motor India is expected to launch its IPO on October 14. It is estimated that the automaker will initiate an initial share sale worth ₹25,000 crore. Let’s take a look at the details related to this so far.
Plan: According to the Draft Red Herring Prospectus (DRHP) filed in June, Hyundai Motor India's proposed IPO is entirely an Offer for Sale (OFS) of 142,194,700 equity shares by the promoter Hyundai Motor Company, with no new issue component.
Price Band and Listing
The company is likely to open its IPO on October 14. If this happens, Hyundai might announce the price band on October 10 or 11. The details regarding the amount required for one lot are still awaited. Earlier reports suggested that the South Korean automaker aims to raise at least $3 billion (around ₹25,000 crore) through the initial share sale. After LIC's ₹21,000 crore IPO, this will be the largest initial public offering (IPO) in India.
New Milestone
This development marks a significant milestone for the Indian industry, as it is the first initial share sale by an automaker in two decades since the listing of Japanese automaker Maruti Suzuki in 2003.
The South Korean parent company sells some of its stake through the OFS route. Since the public offering is entirely an OFS, Hyundai Motor India Limited will not receive any proceeds from the IPO. It’s worth noting that Hyundai is the second-largest automaker in India after Maruti.
SEBI Clearance
The automaker received approval from the Securities and Exchange Board of India (SEBI) on September 24 to proceed with the IPO. Hyundai Motor India has expressed that it expects the listing of its equity shares to "enhance our visibility and brand image and provide liquidity and access to the public market for the shares."
Future Plans
Hyundai Motor India began its operations in 1996 and currently sells 13 models across various segments, including IC-engine cars and EVs. The company is set to launch a new electric car in the coming months, named the Creta EV. This vehicle will compete in the segment against models like the Maruti EVX, Tata Harrier EV, and MG ZS EV.
Source: https://hindi.drivespark.com/four-wheelers/2024/hyundai-plans-25000-crore-ipo-to-release-know-company-future-planning-for-mobility-sector-hindi-news-029401.html
By CarVaidya
