Hyundai Motor India IPO

Hyundai Motor India Gears Up for Record-Breaking $3 Billion IPO, Set to Surpass LIC’s Historic Listing

Get ready for India’s biggest IPO yet! Hyundai Motor India is on the verge of launching a colossal $3 billion initial public offering (IPO), expected to eclipse even the record-breaking LIC IPO from 2022. With regulatory approval in hand and a launch date potentially set for October, this IPO is not just a game-changer for Hyundai but also for the Indian stock market. What makes this IPO so special? Let’s break it down!

Hyundai’s $3 Billion IPO: A Game-Changing Move for India Inc.

South Korean auto giant Hyundai Motor Co’s Indian subsidiary, Hyundai Motor India Limited, is all set to roll out a $3 billion initial public offering (IPO), making it India’s largest-ever IPO. The proposed offering, which is likely to take place in October, comes after the company received the final green light from India’s market regulator, SEBI, following the filing of its draft red herring prospectus (DRHP) in June.

If the listing goes as planned, it will surpass the previous record held by state-owned LIC’s $2.7 billion IPO in 2022, making it a landmark moment in India’s corporate history. The IPO is expected to offer 142,194,700 equity shares as a pure offer for sale (OFS) by the promoter.

Why Hyundai’s IPO Is Poised to Be Historic

According to insiders, this IPO will not only break records but also mark a significant milestone in India’s IPO landscape. Hyundai Motor India is targeting a valuation of around $18 billion to $20 billion. With its extensive history in the Indian market, Hyundai has long been a formidable player in the country’s passenger vehicle sector. In FY24, Hyundai was India’s second-largest carmaker, only behind Maruti Suzuki, in terms of sales volumes.

The record-breaking IPO aims to enhance the company’s brand visibility, provide liquidity, and establish a public market for Hyundai’s equity shares in India. As per the DRHP, “listing of the equity shares will provide a public market for the company and elevate our visibility and brand image across India.”

Hyundai’s Market Leadership and Future Ambitions

Hyundai has solidified its position as one of India’s leading carmakers, with a diverse range of 13 models across different passenger vehicle segments, including sedans, hatchbacks, SUVs, and electric vehicles (EVs). Beyond car manufacturing, Hyundai also produces key components like transmissions and engines, making it a significant player in the country’s automotive supply chain.

Since 2009, Hyundai has maintained its status as the second-largest passenger vehicle manufacturer in India. Not only that, but the company has also been India’s largest exporter of passenger vehicles from Fiscal 2005 to 2024. Hyundai’s contribution to its parent company’s global sales volumes has steadily increased, further underlining its importance in the global automotive landscape.

Hyundai’s Competitive Landscape: A Look at the Rivals

While Hyundai continues to dominate, rival Maruti Suzuki remains a formidable competitor. In the past year, Maruti Suzuki’s share price has risen by 20.25%, and the company boasts a market cap of approximately Rs. 4,00,000 crore (~$48 billion). Hyundai’s $3 billion IPO aims to bolster its standing and potentially close the gap with Maruti in the domestic market.

The Role of Investment Banks and Advisors in Hyundai’s IPO

This high-profile IPO has brought together an impressive lineup of investment banks and advisors. Leading investment banks like Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital, and Morgan Stanley are advising on the transaction. On the legal front, the deal is being managed by Shardul Amarchand Mangaldas as the company’s counsel, Cyril Amarchand Mangaldas as the banks’ counsel, and international law firm Latham and Watkins.

The significance of this IPO can’t be overstated, with industry insiders and market analysts keeping a close watch as Hyundai prepares to raise between $2.5 billion and $3 billion through this historic offering.

Conclusion:

Hyundai Motor India’s upcoming $3 billion IPO is more than just a financial deal—it’s a defining moment for the Indian stock market. With this IPO, Hyundai is poised to set new benchmarks, enhance its visibility, and further solidify its leadership in India’s booming automotive sector. The listing also symbolizes India’s growing importance on the global stage, especially in sectors like automotive manufacturing and export.

As Hyundai’s IPO launch approaches, it’s clear that this deal will be a turning point, not just for the company but for the entire Indian corporate landscape.