Hyundai Motor Co. Prepares for Record-Breaking IPO in India
Hyundai Motor Co. plans to undertake an initial public offering (IPO) for its Indian affiliate, Hyundai Motor India Ltd., which could raise up to $3.5 billion. This will be India’s largest IPO ever, exceeding the previous record set by Life Insurance Corp. of India (LIC), which raised $2.5 billion in 2022.
Key Highlights
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IPO Size and Timing:
- The agreement is expected to be worth at least $3 billion, with the possibility of reaching $3.5 billion.
- The expected listing date is September or October 2024.
- Investor interest measuring will begin in the coming weeks.IPO status: Details such as size and date are still being discussed and could change.
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Prospectus Filing:
- The draft Red Herring Prospectus (DRHP) was filed in mid-June.
- The shares to be sold total 142.2 million, representing a 17.5% interest.
- Note that no additional shares are being sold; proceeds will go to Hyundai’s parent company.
Historical Context
- If Hyundai’s IPO is successful, it will shatter the record established by LIC’s $2.5 billion IPO in 2022.
- Asia’s largest IPOs: It will also be one of the most significant IPOs in Asia in recent years.
Market Context
IPO Performance in India:
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- Total money raised through IPOs in India in 2024: about $5 billion.
- Comparison: More than double the amount raised at this point last year (2023).
Hyundai’s Position
- No comments from Hyundai: A spokesman from Hyundai India declined to comment on the IPO information.
- Previous Reports: The IFR and Indian media had previously projected that the IPO will raise approximately $3 billion.
Conclusion
Hyundai Motor Co.’s proposed IPO for its Indian branch is expected to be the largest ever in India. With a possible raising of up to $3.5 billion, the IPO will have a substantial influence on the Indian market and emphasize the growing importance of the automobile industry in the country’s economy.
Summary Table
| Aspect | Details |
|---|---|
| IPO Date | Expected in September or October 2024 |
| Target Deal Size | $3 billion to $3.5 billion |
| Shares to be Sold | 142.2 million shares (17.5% stake) |
| Proceeds Use | Proceeds will go to the parent company, not new share issuance |
| Record-Breaking | Expected to surpass LIC’s $2.5 billion IPO (2022) |
| Market Context | Nearly $5 billion raised via IPOs in India in 2024 |
| Hyundai’s Comment | No official comment from Hyundai India |
| Previous Reports | IFR and Indian media estimated around $3 billion |
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