Hyundai India to file DRHP for IPO may dilute 17.5% stake for $2.5-3 billion

Hyundai Motor India Limited is a wholly-owned subsidiary of the Hyundai Motor Company, headquartered in South Korea. This division was established in November 2006 and is headquartered in Telangana, Hyderabad. It is the third-largest car manufacturer in India and recently it became the second-largest passenger vehicle in the country with a 14.9% YoY FY24 market share. The company has 2 manufacturing facilities, currently situated in Tamil Nadu. The company’s product portfolio in India includes Eon, the “i” series, and the SUV segment “Creta”. 

About the DRHP Filing:

The Indian subsidiary of Hyundai Motors has paced itself to launch one of the biggest IPOs in India. It has now geared up to file its draft papers with SEBI, the market regulator, to raise around $3B via the Initial Public Offer(IPO) today. This could mark India’s biggest IPO after Life Insurance Corporation of India’s IPO of $2.46 Billion in May 2022. It is possible with the dilution of a 17.5% stake in the parent company. The issue is anticipated to be entirely an offer for sale (OFS) by the parent, who is now expected to sell 140 Million-150 Million shares. The company’s current valuation is set between $18 Billion- $20 Billion. After the DRHP filing, SEBI’s approval is expected within 60-90 days and thus, the IPO could be launched by September or October.

Company’s Operations and Financials:

Based on passenger vehicle sales volumes, Hyundai Motor India Limited became the second largest carmaker after Maruti Suzuki in FY24. Hyundai India raised a revenue of Rs. 60,000 Cr with a profit of Rs.4,653 Crore in FY23. It also unlocked the highest-ever domestic sales in 2023, crossing the 6-lakh mark. It was reported earlier in February that the company picked Citibank, JP Morgan, HSBC Securities and investment banks like Kotak Mahindra Capital and Morgan Stanley.

Conclusion:

Hyundai Motor India’s IPO marks a significant moment for the company and the Indian Automotive market, by rejuvenating interest and investment in the sector.

Stay ahead with the latest on Upcoming IPOs! Discover promising opportunities and get ready to invest.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions