Hyundai Motor India Ltd is likely to file draft papers for its initial public offering (IPO) with market regulator Sebi today, reports claimed. The Indian arm of South Korean carmaker Hyundai Motor Company will file a draft red herring prospectus for its $3-3.5-billion IPO, they added. This could mark India’s biggest IPO so far after Life Insurance Corporation of India’s IPO of ₹20,557 crore ($2.46 billion) in May 2022.
An industry executive told Mint, “Listing its India subsidiary in the country indicates a significant potential for value-realisation from the world’s third-largest passenger vehicle market, which has not yet been fully reflected in Hyundai’s overall market valuation. The India listing is projected to allow a reevaluation of the (company’s) remaining operations and India’s weight in the business, potentially increasing Hyundai’s overall market capitalisation.”
Earlier, it was reported that the company picked advisors for initial public offering of its arm Hyundai Motor India Limited- Citi, JP Morgan and HSBC Securities and investment banks Kotak Mahindra Capital and Morgan Stanley.
The IPO could be purely an OFS (offer for sale) by the parent company.
In FY25, Hyundai Motor India is India’s second largest carmaker after Maruti Suzuki in terms of passenger sales volumes. In FY23, the Indian arm recorded a revenue of ₹60,000 crore with profit of ₹4,653 crore- highest amongst non-listed car manufacturers in the country, the company said.
