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Sebi clears decks for up to $3 billion Hyundai IPO
If the pure offer for sale goes through, the initial share sale would become India's biggest ever IPO, beating state-owned LIC's $2.7 billion listing in 2022
Capital markets regulator Securities and Exchange Board of India (Sebi) has cleared the decks for the $3 billion initial public offering (IPO) of South Korean auto giant Hyundai Motor Co.’s Indian arm in one of the biggest such listings in India.
Hyundai Motor India had in June filed draft papers with Sebi to sell 142 million shares, or a 17.5% stake, in the IPO.
Further details of the share sale, such as the pricing and timeline, is yet to be released.
If the pure offer for sale by the promoter goes through, the initial share sale would become India’s biggest ever IPO, beating state-owned Life Insurance Corporation of India Ltd’s $2.7 billion listing in 2022.
The Hyundai IPO is likely to be launched as soon as next month in the middle of the festive season in India.
“The objects of the offer are to carry out the offer for sale of up to 142,194,700 equity shares of face value of ₹10 each by the promoter selling shareholder aggregating and achieve the benefits of listing the equity shares on the stock exchanges,” the draft prospectus dated 14 June said.
Advisors for the share sale include Kotak Mahindra Bank, Citigroup Inc., JP Morgan Chase & Co, HSBC Holdings Plc and Morgan Stanley.
Citing unidentified company officials aware of the details, Bloomberg had reported that the automaker is looking to raise $2.5-3 billion from the IPO at a valuation of about $30 billion, making it one of the biggest share sales on record in the country.
Hyundai’s share sale, with a potential listing planned by the end of the year, will also make it the first carmaker to go public after Maruti Suzuki’s did two decades ago in 2003.
Market leader Maruti Suzuki India Ltd has a market capitalization of around ₹4.2 trillion, or nearly $50 billion.
Hyundai, whose top-selling models include i20, Verna, Creta, Aura and Tucson, was the second largest automaker by passenger sales volumes in FY24 in India after Maruti Suzuki.
Hyundai said it “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’s India unit had in FY23 reported a profit of ₹4,653 crore on a revenue of ₹60,000 crore.
India had accounted for around 13% of Hyundai’s international sales in 2023.
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