The carmaker plans to offer 17.5%, equivalent to 142.2 million shares, of Hyundai Motor India Ltd., as outlined in a preliminary red herring prospectus. No new shares will be issued by the unit in the IPO, and all proceeds will be directed to the parent company.
Reportedly aiming to raise approximately $2.5 billion through the IPO, with a potential listing by year-end, according to sources familiar with the matter as reported by Bloomberg News. This could mark one of the largest IPOs in India’s history, comparable to the 2022 offering of Life Insurance Corp. of India, valued at 206 billion rupees ($2.5 billion).
Sources, preferring anonymity, suggest Hyundai is eyeing a valuation of up to $25 billion. Hyundai Motor India ranks as the country’s second-largest automaker by sales, with nearly 80% of its car sales revenue coming from domestic markets, according to the draft prospectus.
As per the prospectus, anchor investors may receive up to 42.66 million shares. Qualified Institutional Buyers, including anchor investors, could acquire up to half of the shares offered. Retail buyers will have access to at least 35% of the offering, while the remaining portion will be allocated to non-institutional investors.
Based on the filing, Hyundai Motor India recorded revenue of 521.58 billion rupees for the nine months ending December. Its revenue for the fiscal year ending March 2023 amounted to 603.1 billion rupees.
Kotak Mahindra Bank, Citigroup Inc., HSBC Holdings Plc, JP Morgan Chase & Co, and Morgan Stanley are reportedly the advisers for Hyundai’s share sale, according to the draft prospectus.