Over the past year, Hyundai Motor Group has revealed new investment plans in India totalling approximately five trillion

According to draft papers filed with the Securities and Exchange Board of India (SEBI) on June 15, South Korea’s  Hyundai Motor is preparing to offload up to 17.5 per cent stake in its initial public offering (IPO) of its India unit. It could be India’s biggest-ever IPO.

On Saturday, Hyundai Motor India Limited, the Indian arm of the South Korean auto giant, filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an IPO to raise around $3 billion (Rs 25,000 crore).

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Over the past year, Hyundai Motor Group has revealed new investment plans in India totalling approximately five trillion won ($3.75 billion).

According to the DRHP, the objectives of the offer are to carry out the Sale of up to 142,194,700 (over 142 million) and equity shares of the face value of Rs 10 each by the Promoter Selling Shareholder and to achieve the benefits of listing the Equity Shares on the Stock Exchanges.

“Our Company expects that listing of the Equity Shares will enhance our visibility and brand image and provide liquidity and a public market for the Equity Shares in India,” Hyundai Motor India’s DRHP stated.

As per the reports, If the listing gets the nod from the regulator, it will be the country’s biggest IPO (a pure offer for sale by the promoter) after the state-owned Life Insurance Corporation of India’s (LIC) $2.7 billion listing in 2022.

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The automaker has gained momentum in global investment banks such as Kotak Mahindra, Citibank, Morgan Stanley, JP Morgan and HSBC for its start into the public market. In May, Hyundai Motor India clocked seven per cent year-on-year (YoY) growth in total sales at 63,551 units.

In FY24, Hyundai Motor India was the country’s second-largest carmaker after Maruti Suzuki (in terms of sales volumes). The company launched its first manufacturing plant in 1998 and another one in 2008 in India.