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Hyundai Motor India Ltd, the Indian subsidiary of the South Korean automotive giant Hyundai, is set to launch its highly anticipated Rs 25,000 crore initial public offering (IPO) on October 14th. This significant event is expected to be the largest IPO in India since the Life Insurance Corporation of India (LIC) raised Rs 21,000 crore through its IPO. The upcoming IPO marks a pivotal moment for the Indian automotive industry, as it represents the first IPO by an automaker in over two decades, following Maruti Suzuki's listing in 2003.
Hyundai Motor India's decision to go public is strategically driven by its desire to enhance its brand visibility and image within the Indian market. The IPO is expected to provide the company with increased liquidity and create a public market for its equity shares. The offer-for-sale (OFS) will involve the sale of shares by the promoter, Hyundai Motor Company, signifying a strategic shift in the company's structure and operations.
The IPO is a testament to Hyundai Motor India's strong performance and its unwavering commitment to the Indian market. The company is the second largest carmaker in India, trailing only Maruti Suzuki in terms of passenger sales volume. The IPO is anticipated to further strengthen Hyundai's position within the Indian automotive landscape, allowing it to capitalize on the growing demand for vehicles and expand its operations.
The IPO process is being overseen by a team of leading investment banks, including Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital, and Morgan Stanley, who are acting as the lead managers. Legal counsel for the transaction is provided by Shardul Amarchand Mangaldas for the company, Cyril Amarchand Mangaldas for the banks, and Latham and Watkins for international aspects. The registrar for the issue is KFin Technologies.
Source: Hyundai Motor India likely to launch Rs 25,000 crore IPO on October 14. Check details here