- Hyundai's IPO is expected to be the biggest IPO ever in India.
- Hyundai started its innings in India in 1996 with the Santro.
Hyundai Motor India has received approval from the Securities and Exchange Board of India (SEBI) for a $3 billion initial public offering (IPO) and is all set for a launch in October. All eyes are on what could be India’s biggest IPO ever, possibly surpassing Life India Insurance’s (LIC) $2.7 billion listing in 2022.
Hyundai Motor India had filed a draft red herring prospectus (DRHP) with SEBI in the month of June, targeting a valuation of around $18 billion to $20 billion. “The offer is an offer for sale of up to 142,194,700 equity shares of face value Rs. “The sale of 10 per cent of equity shares by the promoter selling shareholder each will be done and the benefits of listing of equity shares will be received on the stock exchanges. Further, our Company expects that the listing of equity shares will enhance our visibility and brand image and will provide liquidity and public market for equity shares in India,” DHRP said.
According to a Hindustan Times report, Hyundai Motor India is being advised by Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital and Morgan Stanley. Law firm Shardul Amarchand Mangaldas is the counsel for the company.
A look at the journey of Hyundai India
Hyundai Motor India Limited or HMIL is a wholly owned subsidiary of Hyundai Motor Company of South Korea. HMIL was established in 1996 at a time when only a few companies were present in the Indian car market – Maruti Suzuki, Hindustan, Premier, Tata Motors and Mahindra.
Despite being relatively unknown in a very small market at the time, HMIL gained a strong foothold by setting up a factory in Tamil Nadu and targeting the small car segment, rolling out the Santro, launched in September 1998. The success of this model was such that it established HMIL as the second largest car manufacturer in the country.
Over the years, Hyundai has become the country's largest car exporter and has diversified its portfolio for the domestic market. So even though cars like the Santro, i10 and Xcent are no longer available, the focus is on SUVs.
The company's current portfolio in India ranges from the Grand i10 NIOS, Aura sedan and i20 hatchback to the Alcazar, Tucson and the all-electric Ioniq 5. However, the Hyundai Creta is the company's best-selling model and dominates the mid-size SUV space. First launched in 2015, the Creta has over 1.1 million units on Indian roads.
Find out about upcoming cars in India, electric vehicles, upcoming bikes in India and cutting-edge technology that is changing the automotive landscape.
First Publication Date: September 25, 2024, 08:34 AM IST