Buckle Up For The Biggest Public Listing Yet: Hyundai Motor India’s Mega ₹25,000 Crore IPO; Check More Details Here

Hyundai Motor India, the country's second largest automaker after Maruti Suzuki, is gearing up to make history with its initial public offering (IPO).

Recently, the South Korean automaker has received green light from the market regulator Securities and Exchange Board of India (SEBI) to raise USD 3 billion (Rs 25,000 crore) through the public issue.

This offering is poised to surpass the record of LIC's 2022 public issue, which earlier held the title for the India's largest IPO at Rs 21,008 crore.

A Record-Breaking IPO

Although, the exact date of the IPO launch not known but as per reports it is expected to launch soon. The IPO will an Offer for Sale (OFS) where up to 142 million shares (17.5 per cent of the company) will be sold by Hyundai Motor Company, the parent organisation.

The IPO is expected to value Hyundai at approximately USD 18 billion (Rs 1.5 lakh crore), making it the biggest public listing in Indian automotive history.

Why the IPO Now?

Hyundai’s move to go public comes at a time when the Indian automobile industry is thriving. The company’s decision to launch the IPO aims to take advantage of the outperformance of auto stocks on the stock exchanges.

The automaker through this public issue aims to increase its brand visibility, provide liquidity for shareholders, and attract fresh investors.

About the company

Hyundai entered the Indian market on 1996 and since then has become a major player in the country. The company in a sharp speed has established itself in the Indian market with introducing affordable hatchbacks like the Santro, making a wave in the Indian automobile industry and challenging the other players then.

Furthermore, as consumer preference evolved, the company in the Indian market also adapted a shifting culture with it, which led it to sport utility vehicles (SUV) focus as well.

Its 2015 launch of the mid-sized Creta proved to be a game-changer, making it one of Hyundai’s best-selling models and cementing its place in the Indian market.

As of now, 66 per cent of Hyundai’s sales in India come from its extensive lineup of eight SUVs. While Hyundai’s market share in the SUV segment has declined from 24 per cent to 19 per cent over the last three years, the company remains a major force in the country’s booming auto sector.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing in IPOs involves risks and potential volatility. Readers are advised to conduct their own research and consult a financial advisor before making investment decisions. The author and publisher are not responsible for any financial losses incurred by readers.