Hyundai Motor India gets green signal from SEBI to float IPO

25 Sep 2024 , 12:47 PM

Hyundai Motor India Limited, an auto giant has received the nod from the Securities and Exchanges Board of India (SEBI) to float its IPO. The company has filed its around $3 billion IPO draft papers in June with the exchange board to get the approval.

According to the DRHP filed with SEBI, the company stated, “The objects of the offer are to carry out the Offer for Sale of up to 142,194,700 Equity Shares of the face value of ₹10 each by the Promoter Selling Shareholder and to achieve the benefits of listing the Equity Shares on the Stock Exchanges. Further, our Company expects that listing of the Equity Shares will enhance our visibility and brand image and provide liquidity and a public market for the Equity Shares in India.”

This indicates that the offer is completely an offer-for-sale (OFS) and the company will not receive any money through this IPO.

Hyundai Motor India Limited, an Indian subsidiary of South Korean auto giant Hyundai Motor Company is India’s second largest carmaker company after Maruti Suzuki in FY24 based on passenger vehicle sales volumes.

Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital and Morgan Stanley are the mechant bankers of the IPO while law firm Shardul Amarchand Mangaldas acting as a counsellor.

The company added in its DRHP that, “We have also been India’s largest exporter of passenger vehicles from Fiscal 2005 to the first 11 months of Fiscal 2024, having exported the highest cumulative number of passenger vehicles for the same period, according to the CRISIL Report. Since 1998 and up to March 31, 2024, we have cumulatively sold nearly 12 million passenger vehicles in India and through exports. In CY2023, we were among the top three contributors to HMC’s global sales volumes, and our contribution to HMC’s sales volumes has increased from 15.48% in CY2018 to 18.19% in CY2023.”