Hyundai Motor India Limited (HMIL) is preparing for a large IPO, which is expected to be the largest IPO in India's history. The company has filed a draft red herring prospectus (DRHP) with SEBI for this purpose. According to the submitted DRHP, the IPO could be between $2.5 billion (approximately ₹20,800 crore) and $3 billion (approximately ₹25,000 crore).
If this happens, Hyundai Motor India's IPO could surpass the $2.7 billion IPO of Life Insurance Corporation of India (LIC) in 2022, according to reports. The IPO is expected to value Hyundai Motor India between $25 billion (approximately ₹2.08 lakh crore) and $30 billion (approximately ₹2.5 lakh crore).
This reflects the company's strong position and its place in the market. Hyundai is the second largest company in terms of car sales in India. In the financial year 2023, it earned revenues of ₹60,000 crore and a profit of ₹4,653 crore.
Hyundai India is planning to offer 142.2 million equity shares, which constitutes 17.5% of its post-offer paid-up equity share capital. Retail investors will be allocated 35% of these shares, aiming to increase the number of shareholders in the market and enable more people to buy shares in the company.
Hyundai Motor Company established its first plant in India in 1998. Since then, the company has captured a 15% market share. Recently, the company announced a new investment of $3.75 billion to boost the manufacturing of electric vehicles in India and increase overall production capacity.
This IPO will bring several benefits to the company, for example, enhancing Hyundai's visibility and strength in the market. It will also help Hyundai compete more effectively with international companies like Tata Motors and Tesla.
Hyundai India Motor aims to set a new record in the Indian stock market through this major IPO. The company intends to further advance in the Indian car market and demonstrate its commitment to introducing new innovations.
Source: https://hindi.drivespark.com/off-beat/hyundai-motor-india-prepares-for-a-historic-ipo-eyes-global-competition-with-tata-and-tesla-027421.html
By Kuldeep
