Hyundai Motor India IPO: Hyundai Motor India’s unit is preparing to file a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) within the next two weeks, according to a report by the Economic Times. This step initiates the process for an initial public offering (IPO), marking the first such venture by an automaker in India since Maruti Suzuki’s listing in 2003.
If successful, Hyundai Motor India’s IPO could be among the largest in Indian history, potentially raising nearly $2.5 billion, as estimated by Bloomberg. This would place it on par with the Life Insurance Corporation of India’s 2022 IPO, which raised about Rs 20,600 crore ($2.5 billion).
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Following the DRHP filing, SEBI’s approval is expected within 60-90 days, suggesting the IPO could be launched by September or October.
In May, Hyundai Motor India bolstered its team of prominent investment bankers by adding Kotak Mahindra Bank Ltd and Morgan Stanley, joining Citigroup Inc, HSBC Holdings Plc, and JPMorgan Chase & Co as advisers for the offering.
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Hyundai’s strategic focus on the SUV segment has yielded substantial results in India. In a recent sales call, the company’s Chief Operating Officer Tarun Garg highlighted that SUVs comprised a record 67 per cent of Hyundai’s total sales in May. The company’s diverse SUV portfolio includes models like such as the Exter, Venue, Creta, Alcazar, Tucson, and Ioniq 5.
Domestic vehicle dispatches to dealers rose by 1 per cent last month, reaching 49,151 units, up from 48,601 units in May of the previous year. Exports experienced robust growth of 31 per cent, climbing to 14,400 units from 11,000 units in the year-ago period. Hyundai’s rural penetration also stood strong at 20.1 per cent in May.
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Hyundai Motor India’s impending IPO not only signals a significant moment for the company but also for the Indian automotive market, potentially revitalising interest and investment in the sector. The successful listing could pave the way for other automakers to explore similar financial avenues, enhancing market dynamics and competition.
