Hyundai Motor India IPO Aims for Record-Breaking $3 Billion Raise, Valuation to Hit $30 Billion

Hyundai Motor India Ltd. (HMIL) is preparing for a major initial public offering (IPO), which could become the biggest in India’s history. The exact amount to be raised hasn’t been disclosed, but sources suggest it aims to raise $2.5 – $3 billion, valuing the company at $25-30 billion.

This IPO could surpass the record set by the Life Insurance Corp (LIC) of India’s $2.46 billion issue in May 2022. Hyundai Motor India, part of South Korea’s Hyundai Motor Co., is currently India’s second-largest carmaker after Maruti Suzuki.

Hyundai Motor India IPO Details

The proposed IPO is an offer for sale (OFS) of 142,194,700 equity shares by Hyundai Motor Company, with no new shares being issued. This represents 17.5% of the post-offer paid-up equity share capital. Since it’s an OFS, Hyundai Motor India won’t receive any proceeds from the IPO. The company plans to offer 35% of the total shares for sale to retail individual investors.

In its draft papers, Hyundai Motor India stated that listing the shares will enhance its visibility and brand image, and provide liquidity and a public market for the shares. The book-running lead managers (BRLMs) for the IPO are Kotak Mahindra Capital Co Ltd, Citigroup Global Markets India Pvt. Ltd., HSBC Securities and Capital Markets (India) Pvt. Ltd., JP Morgan India Pvt. Ltd., and Morgan Stanley India Co. Pvt. Ltd.