Achi news desk-
The public issue, if passed, will be India’s largest after LIC’s Rs 21,000 crore
Hyundai Motor India Ltd (HMIL), the Indian arm of South Korean carmaker Hyundai, has filed preliminary documents for an initial public offering (IPO). The company’s IPO, if it goes ahead, would be India’s largest, surpassing LIC’s Rs 21,000 crore share sale.
The proposed issue is an entire offer for sale (OFS) of 14,21,94,700 shares of Hyundai Motor Company, with no new issue component, according to the draft red herring prospectus (DRHP).
In February this year, sources confirmed that the parent, Hyundai, was looking to raise at least $3 billion (around Rs 25,000 crore) through an IPO. It may dilute 15-20 percent of HMIL shares to raise funds, the sources added.
Since the public offering is entirely OFS, Hyundai Motor India Ltd, India’s second largest carmaker after Maruti Suzuki India, will not receive any profit from the offering.
This development marks a significant milestone for the Indian industry as it will be the first share sale by a carmaker in over two decades, following the listing of Maruti Suzuki in 2003.
Earlier this week, the electric two-wheeler company Ola Electric received Sebi’s approval to raise funds through an IPO.
In its draft documents, HMIL said it expects the listing of the equity shares to “enhance our visibility and brand image and provide liquidity and a public market for the shares”.
HMIL started its operations in India in 1996 and currently sells 13 models across segments. It reported a 7% year-over-year increase in total sales of 63,551 units in May 2024 compared to 59,601 units in the same month last year. Local delivery of vehicles to dealers increased by 1 percent to 49,151 units last month compared to 48,601 units in the same period last year. Exports increased by 31% in May to 14,400 units compared to 11,000 units a year ago. – PTI
Posted: June 15, 2024, 2:10 PM IST
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