Hyundai Motor India Ltd, the Indian subsidiary of South Korea’s Hyundai, has received approval from the Securities and Exchange Board of India (Sebi) to launch an initial public offering (IPO), as confirmed by sources on Wednesday.
This approval is a notable event for the Indian automotive sector, marking the first IPO from an automaker in over 20 years, following the listing of Maruti Suzuki in 2003. Hyundai’s upcoming IPO will consist solely of an Offer-for-Sale (OFS) of 142,194,700 equity shares by its parent company,
Hyundai Motor Company, with no new shares being issued, as detailed in the draft red herring prospectus (DRHP) submitted in June. The South Korean firm is opting to reduce its stake through this OFS. As the IPO is entirely an OFS, Hyundai Motor India, which is the second largest car manufacturer in India after Maruti Suzuki, will not benefit from the proceeds of the IPO.
Sources indicated that Hyundai Motor India has received a confirmation email from Sebi regarding the IPO approval. In its draft documents, the company expressed that the listing of its equity shares “will enhance our visibility and brand image and provide liquidity and a public market for the shares.”
Earlier this year, reports emerged that the automaker aimed to raise at least $3 billion through the IPO, potentially diluting 15-20% of its stake to gather between $3.3 billion and $5.6 billion. Hyundai Motor India started its operations in the country in 1996 and currently offers 13 models across various segments. Recently, Ola Electric Mobility, an electric two-wheeler company, also made headlines by successfully listing after its initial share sale of ₹6,145 crores.
The company is a prominent subsidiary of the South Korean automotive giant Hyundai Motor Company, known for its innovative and diverse range of vehicles. Established in 1996, the company has rapidly become one of the leading automobile manufacturers in India, consistently ranking among the top car sellers in the country.
It offers a wide array of models, from compact cars to SUVs, and is recognized for its commitment to quality, advanced technology, and customer satisfaction. The company has invested significantly in local manufacturing, with state-of-the-art facilities in Chennai and recently acquired facilities in Talegaon, which contribute to its robust production capacity.
Hyundai is also at the forefront of the push towards sustainable mobility in India, with plans to introduce hybrid and electric vehicles to cater to the evolving demands of Indian consumers. Through continuous innovation and a customer-centric approach, Hyundai Motor India aims to solidify its position in the dynamic Indian automotive market.
