Hyundai Motor India files draft papers with SEBI for India’s biggest IPO

• Hyundai Motor India has filed its draft papers with SEBI for its IPO.
• The Korean automaker’s Indian arm is looking to raise around $3 billion, in what will be India’s biggest IPO yet.
• The automaker has roped in Kotak Mahindra, Citibank, Morgan Stanley, JP Morgan and HSBC for its stock market debut.

Hyundai Motor India Limited (HMIL), the Indian arm of the South Korean automaker Hyundai, on Saturday, filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) to raise around $3 billion (₹25,000 crore).

The automaker has roped in Kotak Mahindra, Citibank, Morgan Stanley, JP Morgan and HSBC for its stock market debut in India. With the upcoming IPO, the company is looking at a valuation between $18 to $20 billion.

The company’s competitors such as Maruti Suzuki, Tata Motors, Mahindra and Mahindra are listed companies.

Over the past year, Hyundai Motor Group has announced new investment plans in India totalling approximately $3.75 billion.

“The objects of the offer are to carry out the Offer for Sale (OFS) of up to 142,194,700 (over 142 million) Equity Shares of the face value of ₹10 each by the Promoter Selling Shareholder and to achieve the benefits of listing the Equity Shares on the Stock Exchanges," according to the DRHP.

Further, "our Company expects that listing of the Equity Shares will enhance our visibility and brand image and provide liquidity and a public market for the Equity Shares in India," Hyundai Motor India’s DRHP added.

If the listing gets the nod from the regulator, it will be the country’s biggest IPO, beating the state-owned Life Insurance Corporation of India’s (LIC) $2.7 billion listing in 2022.

In May, Hyundai Motor India occupied the second spot with 49,151 cars shipped in the domestic market and an export of 14,400 cars.

In FY24, Hyundai Motor India was the country’s second-largest carmaker after Maruti Suzuki. The company established its first manufacturing plant in India in 1998, followed by a second plant in 2008.

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