Mumbai: Hyundai Motor India (HMIL), the second-largest car maker in India, has taken a significant step towards its initial public offering (IPO) by filing a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India. The IPO aims to raise a record ₹25,000 crore (approximately $3 billion).
Key Details:
- Offer Details: The IPO will be an offer-for-sale (OFS) of up to 142.2 million shares, representing a 17.5% stake in HMIL, by its South Korean parent company, Hyundai Motor Co.
- Strategic Move: Hyundai’s decision to go public in India comes amidst the country’s booming IPO market. Reports earlier indicated Hyundai’s consideration of selling 15-20% of its stake through the IPO.
- Market Position: In 2023, Hyundai Motor’s operations in India contributed significantly, accounting for 13% of its global unit sales and 6% of its revenue and profit.
- Valuation: HMIL is valued at approximately $18 billion (₹1.45 lakh crore). For comparison, Maruti Suzuki, India’s largest passenger car company, is valued at ₹4.04 lakh crore.
- Financial Performance: As per the DRHP, HMIL reported selling 584,000 vehicles between April and December 2023, generating a revenue of ₹52,158 crore for the nine months ended December 2023.
- Production and Export: HMIL operates a large manufacturing facility in Chennai with an annual production capacity of 824,000 units. It has been India’s largest exporter of passenger vehicles since FY05.
- Global Reach: Since entering India in 1996, Hyundai has exported 3.53 million passenger vehicles to over 150 countries as of December 2023.
- Investment Plans: Hyundai has already invested $5 billion in its Indian operations and plans to invest an additional $4 billion over the next decade.
- Bankers: The IPO will be managed by Kotak Mahindra Capital, Citi, HSBC Securities, JP Morgan, and Morgan Stanley.
- Product Dominance: HMIL leads the mid-size SUV segment with its popular model Creta, holding a 30% market share in FY24.
This move by Hyundai marks a significant milestone in the Indian automobile industry and underscores its commitment to the market’s growth potential.
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