Hyundai Motor Co has chosen Kotak Mahindra Capital and Morgan Stanley as advisors for the initial public offering (IPO) of its subsidiary Hyundai Motor India Limited on the Indian stock exchanges, a report stated. These banks join Citi, JP Morgan, and HSBC Securities, previously engaged for the IPO.
The company aims to submit the draft red herring prospectus (DRHP) for the Hyundai Motor India IPO to the Securities & Exchange Board of India (SEBI) by the end of June or July, according to sources quoted by Moneycontrol.
The Hyundai Motor India IPO is expected to be entirely an offer for sale (OFS) by the parent company and is set to become India’s largest IPO, with plans to raise between $2.5 billion to $3 billion through the offering, the report noted.
The IPO is anticipated to value the Indian arm at approximately $20 billion, with discussions currently considering a 15% OFS, although this figure is not finalized yet.
However, the valuation and IPO size are not yet confirmed and may vary depending on the company’s strategy and market conditions, as per sources cited by Moneycontrol.
Currently, the Life Insurance Corporation of India (LIC) IPO holds the title of the largest IPO in India, raising $2.7 billion in May 2022.
In FY24, Hyundai Motor India ranked as India’s second-largest carmaker after Maruti Suzuki in terms of passenger sales volumes.
The company recorded a revenue of ₹60,000 crore with a profit of ₹4,653 crore in FY23, marking the highest among non-listed car manufacturers in the country.
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