The wholly-owned subsidiary of the Hyundai Motor Company headquartered in South Korea, Hyundai Motor India has secured the approval from the capital market regulator Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO) as per the reports.
Hyundai Plans $3 Billion IPO in India, set to Break Records in Automobile Sector
As per the reports, the South Korean automaker plans to raise $3 billion (around ₹25,000 crore) at a roughly $20 billion valuation, as per reports.
Previous biggest IPO in India of LIC’s share sale was ₹21,000 crores and it is believed that if all goes through than the IPO of Hyundai would surpass the former. In the automobile sector, after Japanese automaker Maruti Suzuki listed itself in 2003 and now the reports of Hyundai IPO marks a significant milestone for the Indian automobile industry.
After US and South Korea, India is the 3rd biggest source of revenue for Hyundai. As per the reports, the company has already invested $5 billion in India and has also committed to further pump another $4 billion over the next decade.
As per sources the final observations of the regulator have come in and the record breaking IPO is likely to be launched in the month of October.
Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital, and Morgan Stanley are the investment banks advising on the transaction, with law firm Shardul Amarchand Mangaldas acting as the company counsel, Cyril Amarchand Mangaldas as the banks’ counsel, and Latham and Watkins acting as the international counsel.
12% YoY Sales Growth Despite Decline in Domestic Dispatch and Exports
With 13 models in the product portfolio, Hyundai Motor India started its operations in India in 1996.
As per the statement of automaker, it reported a 12% year-on-year (YoY) increase in total sales at 63,175 units in the month of August. Domestic dispatch of vehicles to dealers saw an 8% dip to 49,525 units last month from 53,830 units in the year-ago period.
As compared to 17,605 units in the year-ago period, the exports have declined 22% in the last month.
