The South Korean parent company is reducing its ownership stake via an Offer for Sale (OFS) route. As the public offering consists entirely of an OFS, Hyundai Motor India Ltd, which ranks as India’s second-largest car manufacturer after Maruti Suzuki India, will not obtain any proceeds from the Initial Public Offering (IPO).
Hyundai Motor India Ltd, the Indian division of South Korean car manufacturer Hyundai, is set to open its highly anticipated initial public offering (IPO) for public subscription on October 14, according to sources familiar with the matter. This IPO, aimed at raising INR 25,000 crore, is poised to be India’s largest since the LIC’s INR 21,000 crore offering.
The offering, as detailed in the Draft Red Herring Prospectus (DRHP) filed in June, will exclusively involve an Offer for Sale (OFS) of 142,194,700 equity shares by its parent company, Hyundai Motor Company, without the issuance of any new shares. This IPO marks a significant event in the Indian automotive sector, being the first such offering from an automaker in over two decades since Maruti Suzuki’s debut in 2003.
Hyundai Motor India, which started its operations in 1996 and presently offers 13 models in various segments, will not benefit financially from the IPO as it is comprised solely of an OFS. The company aims to sell a 15-20% stake to raise between USD 3.3 and 5.6 billion, enhancing its visibility and market presence.
The Securities and Exchange Board of India (Sebi) granted approval for the IPO on September 24. The listing is expected to provide liquidity and a public market for the shares, boosting Hyundai’s brand image and market stature.
This IPO is launching at a time when the primary market is witnessing heightened interest from issuers and investors alike, driven by robust macroeconomic conditions and sector-specific factors. So far this year, 62 companies have raised approximately INR 64,000 crore, reflecting a 29% increase over the previous year.
