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Hyundai Motor India files papers for Rs 25,000-cr IPO, India’s largest ever
- IBJ Bureau
- Jun 16, 2024
Hyundai Motor India, the Indian arm of South Korean automaker Hyundai and second-largest car-maker by sales, has filed draft IPO papers with market regulator SEBI. The company is looking to raise about $3 billion or Rs 25,000 crore from the IPO, and the proposed IPO is entirely an Offer For Sale (OFS) of 14,21,94,700 equity shares.
This could be the biggest IPO in the Indian market. If the offer goes through, it would be surpassing even LIC’s Rs 21,000-crore offer. According to industry sources, there would be no fresh issue of shares, and the auto major plans to use the money raised from the IPO for expansion. Since the public issue is completely an OFS, Hyundai Motor India will not receive any proceeds of the IPO.
This development will also be a significant milestone for automotive companies in India as this will be the first initial share sale by an automaker in over two decades, following Maruti Suzuki’s listing in 2003.
According to the PTI, in its draft papers, Hyundai Motor has said that it expects that the listing of the equity shares “will enhance our visibility and brand image and provide liquidity and a public market for the shares”. Hyundai Motor India kick-started its operations in India in 1996 and currently sells 13 models across segments.
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