Hyundai Motor India Set to Smash Records with ₹25,000-Crore IPO on Oct 14 – Bigger than LIC’s

Hyundai Motor India is set to launch its ₹25,000-crore initial public offering (IPO) on October 14, according to a report by PTI. This IPO will be the largest ever in India, surpassing Life Insurance Corporation’s (LIC) ₹21,000-crore public offering.

Hyundai Motor India, the Indian arm of the South Korean car manufacturer, is offering an “offer-for-sale” (OFS) of 142,194,700 equity shares from its parent company, Hyundai Motor Company. There will be no new shares issued in this IPO, as stated in the draft red herring prospectus (DRHP) filed with SEBI in June.

The company aims to raise around ₹25,000 crore (approximately $3 billion) by selling a 15-20% stake, according to the report. With this public offering, Hyundai Motor India, the second-largest carmaker in India after Maruti Suzuki, will become the first automaker in 20 years to go public. Maruti Suzuki was last listed in 2003.

Since this IPO is completely an OFS, Hyundai Motor India itself will not receive any of the proceeds. The company received approval from SEBI for its IPO on September 24.

The aim of the IPO, according to the DRHP, is to boost the company’s visibility and brand image while providing liquidity for its shares in the market. Hyundai Motor India began its operations in 1996. Financially, the company recorded revenue of ₹32,488.34 crore for the nine months ending on December 31, 2023, and a net profit of ₹4,382.87 crore, with a profit margin of 13.5%.

The lead managers for the IPO include Kotak Mahindra Capital Company, Citigroup Global Markets India, HSBC Securities & Capital Markets, JP Morgan India, and Morgan Stanley India. Kfin Technologies Limited is the registrar for the issue.