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Hyundai Motor India Limited, the Indian subsidiary of the South Korean automotive giant Hyundai Motor Co., has received approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO). This IPO, anticipated to reach approximately $3 billion (around Rs 25,000 crore), is poised to become the largest ever in India's history, surpassing the previous record set by Life Insurance Corporation of India (LIC) in 2022. The IPO is scheduled to launch in October, with Hyundai Motor India aiming to achieve a valuation of between $18 billion and $20 billion.
The IPO will be structured as an Offer-for-Sale (OFS), where Hyundai Motor Company, the promoter, will sell 142,194,700 equity shares to the public. No fresh issue component is included in the offering. Each equity share will have a face value of Rs 10. The listing of these equity shares is expected to enhance Hyundai Motor India's visibility and brand image while also providing liquidity and a public market for the shares within India.
Hyundai Motor India's IPO marks a significant event, as it will be the first time a car manufacturer in India has gone public in two decades. The last such IPO was conducted by Maruti Suzuki in 2003. The company has engaged a consortium of investment banks, including Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital, and Morgan Stanley, to manage the IPO. Legal counsel for the company is provided by Shardul Amarchand Mangaldas, while Cyril Amarchand Mangaldas serves as legal counsel for the banks involved. Latham and Watkins is acting as the international legal counsel for Hyundai Motor India.
Source: 9 things about India's biggest IPO set to hit markets in October