Hyundai Motor IPO: Hyundai Motor India Limited, a subsidiary of South Korean auto giant Hyundai Motor Co., plans to offer approximately 17.5 per cent of its stake in an initial public offering (IPO), aiming to raise around $3 billion (approximately Rs 25,000 crore), according to reports.

If successful, this IPO will mark Hyundai Motor Co.’s first listing outside of South Korea. The move also represents the first major IPO by a car manufacturer in India since Maruti Suzuki’s listing back in 2003. 

Hyundai Motor India has consistently held the position of the second largest auto original equipment manufacturer (OEM) in India’s passenger vehicles market since fiscal year 2008-09, according to the draft red herring prospectus (DRHP) filed by the company.

Additionally, Hyundai Motor’s Draft Red Herring Prospectus (DRHP) highlighted several major risks. These include the company’s reliance on a mix of domestic and international suppliers for components like trims, engines, transmissions, and materials such as steel, with potential adverse effects from increased prices. Additionally, Hyundai, its subsidiaries, and its promoter HMC are engaged in ongoing legal proceedings, where unfavourable outcomes could impact their business and financial health. Furthermore, conflicts of interest could arise due to overlapping business activities with Kia Corporation and Kia India Private Limited, posing further potential risks to Hyundai Motor India Limited (HMIL).

Hyundai Motor India’s expected proceeds could potentially exceed the Rs 21,000 crore raised in LIC’s recent share sale, setting a new record in India’s financial markets.

That apart, Paytm’s Rs 18,300-crore IPO, Coal India’s Rs 15,457-crore IPO, and DLF’s Rs 9,188-crore IPO are some of the biggest initial public offers in the history of Indian stock markets. Take a look: 

First Published: Jun 18 2024 | 9:00 AM IST