Hyundai Motor India Limited (HMIL), the Indian subsidiary of South Korea’s Hyundai Motor Company, has initiated the process to go public with a landmark initial public offering (IPO) aimed at raising around $3 billion. The company filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), signaling its intent to offer up to 142,194,700 equity shares at a face value of ₹10 each. This IPO, if successful, would surpass the previous record set by LIC’s $2.7 billion IPO in 2022, making it the largest-ever IPO in India’s history.
The primary objective of the IPO is to facilitate a complete offer for sale (OFS) by the promoter, providing an exit for existing shareholders and enhancing liquidity in Hyundai’s equity shares. Additionally, Hyundai aims to leverage the listing to bolster its brand image, increase visibility in the Indian market, and establish a robust public market for its shares. The move comes amid Hyundai’s strategic growth plans in India, where it holds a significant position as the second-largest passenger car manufacturer after Maruti Suzuki.
Financially, Hyundai Motor India reported substantial performance metrics for the fiscal year 2023, with revenues amounting to ₹60,000 Crore and profits reaching ₹4,653 Crore. These figures underscore Hyundai’s status as the most profitable non-listed car manufacturer in India, driven by the success of popular models like the i20, Verna, Creta, Aura, and Tucson. The Indian market contributed approximately 13% to Hyundai’s global sales in 2023, highlighting its strategic importance in the company’s global operations.
The advisory process for the IPO is being handled by Shardul Amarchand Mangaldas, a prominent Indian law firm serving as the company counsel, alongside international legal support from Latham & Watkins. This collaboration underscores Hyundai’s commitment to navigating the complexities of India’s regulatory landscape and ensuring compliance throughout the IPO process. The IPO announcement reflects Hyundai’s strategic intent to capitalize on favorable market conditions, strengthen its market position in India, and provide enhanced value to its shareholders.