Winning Bizness Desk
Mumbai. Hyundai Motor India, the Indian unit of South Korean company Hyundai, is preparing to bring the biggest Initial Public Offering (IPO) ever in the Indian market. It has filed Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on June 15 (Saturday) to bring the IPO. Hyundai Motor India wants to raise $2.5-3 billion (Rs 25,000 crore) by selling up to 17.5% of its stake through IPO. The company is selling 142 million i.e. 14.2 crore shares out of its total 812 million (81.2 crore) shares in this IPO. The company will not issue new shares in this IPO. Hyundai India's parent Hyundai is selling part of its stake in the company to retail and other investors through this Offer for Sale (OFS). This will be the company's first IPO outside South Korea. Hyundai India is valued at $30 billion. Listing of shares will reduce dependence on its parent company. The company will recall 1,744 cars of its EV model Ioniq 5 in the Indian market. A defect in charging control has been found in these cars. All of them have been manufactured between July 21, 2022 and April 30, 2024. The price of this car starts at Rs 46 lakh.
JP Morgan, Citi and HSBC appointed as advisors
According to reports, the company's IPO may come around Diwali i.e. in October-November. For this IPO, Hyundai has appointed investment banks JP Morgan, Morgan Stanley, Kotak Mahindra Bank, Citi and HSBC as advisors. This IPO will be the first initial public offering of an automaker in India in 20 years. Earlier, Maruti Suzuki's IPO came in 2003. Hyundai is the second largest carmaker in the country after Maruti Suzuki India.
The largest IPO in the country so far after LIC
This IPO will be the largest IPO in the country so far. In 2022, the government sold its 3.5% stake in LIC. For this, an IPO of about Rs 21 thousand crore was brought. If Hyundai Motor India is listed in the stock market, then it will be the fourth largest automobile company after Maruti-Suzuki, Tata Motors, Mahindra & Mahindra. Hyundai Motor India is the second largest car company in the country after Maruti.
