Hyundai Motors India Receives SEBI Approval for Historic Rs25,000 Crore IPO

Synopsis : Hyundai Motors India is set to launch the largest IPO in Indian history after receiving approval from SEBI, with a valuation of Rs25,000 crore. The offering, scheduled for October 2024, is expected to elevate Hyundai's visibility and liquidity while attracting significant investor interest. Top financial advisors and legal firms are involved in this landmark transaction, highlighting its importance to both Hyundai and the Indian stock market.

Hyundai Motors India Limited (HMIL), a subsidiary of the South Korean automaker Hyundai Motor Company, has received approval from the Securities and Exchange Board of India (SEBI) to launch its highly anticipated initial public offering (IPO). This IPO, valued at approximately Rs25,000 crore ($3 billion), is set to become the largest in Indian stock market history, surpassing the record previously set by LIC’s IPO in 2022.

The IPO, expected to be launched in October 2024, consists entirely of an offer-for-sale (OFS) by the promoter, Hyundai Motor Company. This move allows the company to raise funds by selling a portion of its shares without diluting the equity base. The offering includes 142.2 million equity shares, representing 17.5% of Hyundai Motors India's post-offer paid-up capital.

Strategic Goals and Market Impact

The listing on the Indian stock exchanges is aimed at boosting the company's visibility, improving its brand image, and providing liquidity to shareholders. As India's second-largest automaker, Hyundai Motors India reported impressive financials in FY23 with revenues of Rs60,000 crore and profits of Rs4,653 crore. These figures make the company one of the most profitable non-listed automotive firms in the country.

Hyundai Motors India is currently valued at $25-30 billion post-listing, positioning it ahead of major industry players like Mahindra & Mahindra and Adani Power.

Advisors and Legal Counsel

Several renowned financial and legal entities are involved in the IPO. Investment banks such as JP Morgan, Citi, HSBC, Kotak Mahindra Capital, and Morgan Stanley are serving as lead managers for the offering. The legal counsel for the company includes Shardul Amarchand Mangaldas, while Cyril Amarchand Mangaldas and Latham & Watkins are representing the banks and international interests, respectively. The registrar for the issue is KFin Technologies.

This IPO is part of Hyundai's broader strategy to strengthen its foothold in the Indian market and leverage the increasing interest in electric vehicles (EVs) and sustainable mobility solutions.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Prospective investors should conduct thorough research and consult financial experts before making investment decisions.