Hyundai India Prepares IPO DRHP Filing, Targets $2.5-3 Billion from 17.5% Stake Sale

The Indian division of South Korean automotive giant Hyundai Motor Co, known as Hyundai Motor India Limited, is preparing to submit draft documents to the market regulator Sebi. The aim is to raise approximately $3 billion through an initial public offering (IPO), targeting a valuation between $18 billion and $20 billion, according to several anonymous sources familiar with the matter, as reported by Moneycontrol.

Should the listing plans materialize, this would mark the largest IPO in India's corporate history, surpassing the previous record set by state-owned LIC's $2.7 billion listing in 2022. 

"The plan is for the e-filing of the draft red herring prospectus to be done today ( June 14) with Sebi in the second half. But it may spill over depending on the pace of finishing touches. The issue is entirely an offer for sale ( OFS) by the parent which is expected to sell 140 million to 150 million shares," said one of the persons above.

Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital, and Morgan Stanley are the investment banks advising on the transaction, with Shardul Amarchand Mangaldas serving as the company counsel. Moneycontrol has reached out via email for comments from Hyundai headquarters and its advisors but has not received an immediate response. The article will be updated once they provide feedback. 

On May 24, Moneycontrol reported that Hyundai's India unit was anticipated to file draft papers by the end of June, with plans to raise between $2.5 billion and $3 billion. 

Previously, Citi, JP Morgan, and HSBC Securities were engaged for this high-profile deal, as reported by Moneycontrol on February 9. In FY24, Hyundai Motor India Limited was the second-largest carmaker in India, following Maruti Suzuki in terms of passenger sales volumes. Over the last six months, Maruti Suzuki India's share price has increased by 24.35 percent, and the market leader currently has a market capitalization of approximately ₹4,00,000 crore, or nearly $48 billion. 

Hyundai's India unit concluded FY23 with revenue of ₹60,000 crore and profits of ₹4,653 crore, making it the most profitable non-listed car manufacturer in the country, as reported by Autocar Professional. India remains a crucial market for Hyundai, contributing to approximately 13 percent of its global sales in 2023. The company's car models in the Indian market include the i20, Verna, Creta, Aura, and Tucson. 

Also read about Hyundai Motor IPO

The Economic Times was the first to report on Hyundai's India listing plans on February 5. In response to media reports, Hyundai Motor Co issued an official statement to the Korean Stock Exchange on February 7. Hyundai stated that as a global company, it continually reviews various activities, including the potential listing of overseas subsidiaries, to enhance corporate value, but no decisions have been confirmed to date.