Hyundai Motor India Limited (HMIL), the Indian arm of the South Korean auto giant, is moving closer to launching its much-anticipated initial public offering (IPO), estimated at around $3 billion. The Securities and Exchange Board of India (SEBI) has approved the listing. Hyundai hasn’t confirmed this officially though, but knowledgeable sources state this to be the case.
Hyundai had filed the draft papers for IPO on June 15th. The draft red herring prospectus (DRHP) said that listing equity shares will enhance Hyundai’s visibility and brand image, alongside providing more liquidity. It aims for a valuation between $18 billion and $20 billion.
Once approved, the Hyundai IPO will become India’s largest-ever, surpassing the $2.7 billion listing of LIC in 2022. A successful listing will also make it the first carmaker to go public in India in two decades, after Maruti Suzuki’s IPO in 2003.
In many mass market segments, Hyundai seconds Maruti Suzuki in numbers, on sales grounds. It has, in fact, been consistently ranking as the second-largest original equipment manufacturer (OEM) in terms of sales since 2009.
About Hyundai India IPO
This IPO will be a pure offer for sale (OFS) by Hyundai’s promoter, with up to 142,194,700 equity shares being offered, each with a face value of Rs 10. The i-banks advising on the transaction are Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital, and Morgan Stanley. Law firm Shardul Amarchand Mangaldas acts as the company counsel and Cyril Amarchand Mangaldas is the banks’ counsel. The international counsel is Latham and Watkins.
If this IPO materializes, it will not only make headlines as the largest in Indian history but also strengthen Hyundai’s position in one of the world’s most competitive automotive markets. Hyundai India’s contribution to its parent company’s global sales volumes has risen from 15.48% in 2018 to 18.19% in 2023.
One source mentioned that the final observations from the regulator have been received, adding that this record-breaking IPO is expected to be launched in October.
Hyundai India’s Product Portfolio
Hyundai India has a diverse portfolio of 13 passenger vehicle models, including sedans, hatchbacks, SUVs, and battery electric vehicles (BEVs).
Hatchbacks include the Grand i10 NIOS, i20 and i20 NLine. Sedan are the Aura and Verna. The most number of models are in the SUV space- Exter, Venue, Venue N Line, Creta, Creta N Line, Alcazar and Tucson. Even though it used to have the Kona EV on sale, the current BEV lineup includes just the IONIQ 5.
The manufacturer is actively working on further expansion of its portfolio. It recently launched the new Alcazar, and seems to have more products coming up in the near future- including an EV based on the popular Creta SUV.
Besides vehicles, the company also manufactures essential parts such as transmissions and engines. According to its Draft Red Herring Prospectus (DRHP), Hyundai has been the second-largest original equipment manufacturer (OEM) in India’s passenger vehicle market since 2009, based on domestic sales volumes.
It is also a major player in exports. Since 2005, Hyundai has been India’s largest exporter of passenger vehicles, a position it maintained until the first 11 months of FY2024. Over the years, Hyundai has sold nearly 12 million vehicles in both the Indian and export markets.
Maruti Share Prices Rising
The share price of Hyundai’s key rival, Maruti Suzuki, has seen a 20.25% rise over the past year. At the time of writing this article, it is selling for over Rs 12,600. With a market capitalization of approximately Rs 4,00,000 crore (nearly $48 billion), Maruti remains the market leader in India’s automotive sector.
![Mahindra Scorpio-N And Tata Harrier Collide Head-On: Here's The Result [Video]](https://www.cartoq.com/wp-content/uploads/2024/10/harrier-vs-scorpio-n-featured-253x131.jpg.webp)
![Bollywood Actress Shilpa Shetty's New Ride Is A Multi-Crore Ferrari Portofino Supercar [Video]](https://www.cartoq.com/wp-content/uploads/2024/10/shilpa-shetty-ferrari-featured-253x131.jpg.webp)
