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

• 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.

• 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:

• • 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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