Hyundai Motor IPO: 10 Key Facts Investors Should Know

Hyundai Motor’s Indian arm has filed initial documents with the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO). The company plans to raise between $2.5 billion to $3 billion through this public offer. Here are key details about the IPO:

About Hyundai Motor India

Hyundai has been operating in India for 28 years, gaining popularity for its range of cars from affordable models like Santro to SUVs like Creta. The company aims to introduce new electric vehicles, set up charging stations, and establish a battery pack assembly unit.

IPO Details

Hyundai Motor India filed for regulatory approval on Saturday for its IPO in Mumbai. This could be India’s largest IPO, with the South Korean parent company selling up to 17.5% of its stake in the Indian subsidiary. This marks the first IPO by an automaker in India since Maruti Suzuki in 2003.

Expected IPO Size

While the draft prospectus does not specify the IPO price or valuation, reports indicate Hyundai aims to raise $2.5 billion to $3 billion, potentially valuing the company at up to $30 billion. This would position it among the largest IPOs in India, following Life Insurance Corporation of India’s $2.5 billion issue in 2022.

Offer Details

Hyundai will not issue new shares in the IPO. Instead, the IPO will involve the sale of up to 14.2 crore equity shares from a total of 81.22 crore shares held by the South Korean parent company.

Purpose of the Offer

Listing in India is expected to enhance Hyundai’s visibility and brand image, while providing liquidity and access to the public market for its shares. The IPO aims to unlock value for its Indian operations and reduce the valuation gap compared to its global and Asian peers.

Offer Structure

Qualified institutional buyers (QIBs) will be allocated up to 50% of the shares, retail individual investors (RIIs) will have at least 35%, and non-institutional investors (NIIs) will receive a minimum of 15% of the shares issued.

Lead Managers

The IPO’s book-running lead managers include Kotak Mahindra Capital Company, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), JPMorgan India, and Morgan Stanley India.

Registrar

KFin Technologies will act as the registrar for the IPO.

Financial Performance

Hyundai Motor India Limited ranks second in India after Maruti Suzuki in passenger vehicle sales. In FY23, the company reported revenue of Rs 60,000 crore and profits of Rs 4,653 crore, marking the highest among non-listed car manufacturers in India.

This IPO is set to significantly impact Hyundai’s presence in the Indian market and offer investors an opportunity to participate in its growth story.