NEW DELHI: The much-awaited initial public offering (IPO) of Hyundai Motor India, the Indian arm of South Korean automaker Hyundai, is expected to hit the market on October 14, said people familiar with the development. Valued at about Rs 25,000 crore, it will be the largest IPO in the Indian capital market history. The previous largest IPO in India was of LIC’s initial share sale of Rs 21,000 crore.
According to the Draft Red Herring Prospectus (DRHP) filed in June, Hyundai Motor India’s proposed IPO is entirely an Offer-for-Sale (OFS) of 142,194,700 equity shares by promoter Hyundai Motor Company, with no fresh issue component. The automaker received approval from the Securities and Exchange Board of India (Sebi) on September 24 to float its IPO.
Since the public issue is completely an OFS, Hyundai Motor India Ltd, which is the second largest carmaker in India after Maruti Suzuki India, will not receive any proceeds from the IPO. In its draft papers, Hyundai Motor India stated that it expects that the listing of the equity shares “will enhance our visibility and brand image and provide liquidity and a public market for the shares”.
Hyundai Motor India commenced operations in India in 1996 and currently sells 13 models across segments. The IPO launch comes at a time when the primary market is experiencing strong interest from both issuers and investors across various sectors.