Hyundai Motor India IPO: The Securities and Exchange Board of India (SEBI) has cleared the initial public offering (IPO) papers for Hyundai Motor India Ltd. The South Korean auto major plans to launch an IPO of up to 142,194,700 equity shares, each with a face value of ₹10.
Potential Valuation and Launch Date
A media report has indicated that the potential valuation of Hyundai India’s IPO could be around ₹25,000 crore (nearly $3 billion). The company aims to launch it in the first fortnight of October. If successful, this IPO will surpass the current record held by the Life Insurance Corporation (LIC) of India, which raised approximately $2.45 billion.
Structure of the IPO
The upcoming IPO will consist entirely of an offer for sale by Hyundai Motor Company, the promoter and selling shareholder. Once completed, the shares offered will represent 17.50% of the total equity share capital of Hyundai Motor India.
Importance of SEBI Approval
The SEBI nod marks a crucial step for Hyundai Motor India as it seeks to expand its footprint in the competitive Indian market and enhance shareholder value. More details regarding the pricing and timeline for the IPO are expected to be released in the coming weeks.
Position in the Indian Market
Hyundai Motor India holds the second-largest market share in the country’s passenger vehicle segment, following market leader Maruti Suzuki. The company aims to enhance its production capacity and sales network to strengthen its competitive position in the market.
This IPO could be significant not only for Hyundai but also for the Indian automobile sector, potentially symbolizing a new era where companies are publicly offering their stakes. As the IPO date approaches, investors and market experts will keep a close watch on this important launch.
