NEW DELHI: Hyundai Motor India, the Indian arm of South Korean automaker Hyundai, is expected to launch its much-awaited Rs 25,000-crore initial share-sale for public subscription on Oct 14, people familiar with the development said on Thursday. This would be the largest initial public offering (IPO) in India after LIC’s initial share sale of Rs 21,000 crore.
According to the Draft Red Herring Prospectus (DRHP) filed in June, Hyundai Motor India’s proposed IPO is entirely an Offer-for-Sale (OFS) of 142,194,700 equity shares by promoter Hyundai Motor Company, with no fresh issue component.Sources had previously stated that the South Korean automaker is looking to raise at least $3 billion (about Rs 25,000 crore) through an initial share sale.
This development marks a significant milestone for the Indian industry, as it is an automaker’s first initial share sale in over two decades, following Japanese automaker Maruti Suzuki’s listing in 2003. The South Korean parent is diluting some of the stake through the OFS route. Since the public issue is completely an OFS, Hyundai Motor India, which is the second largest carmaker in India after Maruti Suzuki India, will not receive any proceeds from the IPO.
