Shares of Hyundai Motor, South Korea’s top carmaker, surged on Monday following the announcement that its Indian subsidiary has filed for an Initial Public Offering (IPO) to raise around $3 billion (₹25,000 crore).
Hyundai Motor’s stock price increased by 6.34% to 285,000 won (about $206) shortly after the market opened on the South Korean stock exchange, reaching a new 52-week high. However, the stock settled at 279,000 won by 10:30 a.m. local time, according to Yonhap news agency.
Earlier today, Hyundai Motor revealed in a regulatory filing that its Indian unit had submitted the necessary documents for the IPO to the Indian regulatory authority.
Hyundai Motor stated that the decision on listing its Indian unit will depend on the review by India’s regulatory body but did not provide further details. Hyundai Motor India has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for the IPO.
According to the DRHP, “The purpose of the offer is to conduct an Offer for Sale of up to 142,194,700 (over 142 million) Equity Shares of ₹10 each by the Promoter Selling Shareholder and to achieve the benefits of listing the Equity Shares on the Stock Exchanges.” The document also notes that “listing the Equity Shares will enhance our visibility and brand image and provide liquidity and a public market for the Equity Shares in India.”
If approved, this IPO will be the largest in India, based purely on a promoter’s sale, since the state-owned Life Insurance Corporation of India (LIC) raised $2.7 billion in its listing in 2022.
In the fiscal year 2024, Hyundai Motor India was the country’s second-largest carmaker, trailing only Maruti Suzuki in terms of passenger car sales.
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