Hyundai Motor India Ltd (HMIL) has received approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO), valued at approximately ₹25,000 crore. The IPO is expected to take place in October, marking a significant milestone for the South Korean automaker in one of its key markets.
Hyundai Motor India, a subsidiary of Hyundai Motor Company, will offer 142,194,700 equity shares through a complete offer-for-sale (OFS) mechanism. This sale represents a 17.5% stake in the company, aiming to raise close to ₹25,000 crore. The valuation of the company is anticipated to be between $18 billion and $20 billion.
The Indian market holds substantial importance for Hyundai, being its third-largest revenue generator after the United States and South Korea. Established in 1996, Hyundai Motor India has grown to become the second-largest car manufacturer in the country, with a market share of 15%. The company’s portfolio includes popular models such as the Hyundai Creta, Venue, and the newly launched Alcazar, which have contributed significantly to its market position.
Hyundai’s IPO arrives at a time when the Indian automotive market is experiencing a resurgence in demand following the disruptions caused by the COVID-19 pandemic. The funds raised through this IPO will likely be used to expand production capacity, invest in new technologies, and strengthen Hyundai’s competitive edge against local rivals like Maruti Suzuki and Tata Motors.
This IPO is notable as it will be the first public offering by an automotive company in India since Maruti Suzuki India Ltd. launched its IPO in 2003. Maruti Suzuki, the market leader, has set a high benchmark in the industry, and Hyundai aims to leverage this opportunity to enhance its market share and operational capabilities.
The approval of Hyundai’s IPO by SEBI reflects the regulator’s confidence in the company’s financial health and growth prospects. The IPO is expected to attract significant investor interest, given Hyundai’s strong brand presence and performance in the Indian market. Analysts predict that the influx of capital will not only bolster Hyundai’s balance sheet but also drive further innovations in vehicle technology and customer service.
Hyundai Motor India’s upcoming IPO is poised to be a landmark event in the Indian automotive industry. With SEBI’s approval in place, the company is set to raise substantial capital that will fuel its growth and expansion plans in one of the world’s fastest-growing automotive markets. Stakeholders and potential investors are closely monitoring the developments, anticipating a successful public offering that could reshape the competitive dynamics of the industry.
