Hyundai Motor India Gearing Up For IPO; Company Plans to File DRHP in June

South Korean automobile company Hyundai Motor has hired Morgan Stanley and Kotak Mahindra Bank as advisors on a potential initial public offering (IPO) for its India unit. This IPO could be the biggest ever listed in a South Asian country. 

The banks have joined Citigroup, HSBC Holdings, and JP Morgan Chase and Company as advisors on this issue. According to Bloomberg, Hyundai could raise $2.5 billion. 

Hyundai Motor India Limited plans to file an Initial public offering in June 2024. This issue could be equal to the Life Insurance Corporation's $2.7 billion raise in May 2022. 

Hyundai Motor's IPO is Offer-for-Sale 

Hyundai Motor's IPO is likely to be an offer for sale issue by its parent company and slated to be India’s largest IPO of $2.5 billion to $3 billion.  

The IPO is likely to value the Indian arm of Hyundai at around $20 billion, and the OFS figure is still not fixed, which is currently around 15% and has not been frozen yet. 

However, the valuation and IPO size is not yet finalized which may change in future depending on the company strategy and market conditions.  

At present Life Insurance Corporation IPO which raised $2.7 billion and listed at a decent premium. Currently, LIC share price is trading at Rs 1,034. On a year-to-date basis LIC generated a return of 20% and successfully holding Rs 1000 mark.  

Hyundai Motor’s Sales Data Hyundai Motor

Hyundai Motor sold 63,701 units in April, a rise of 9.5% year over year. It dispatched 58,201 units in the same period last year. Domestic wholesale increased 1% to 50,201 units from 49,701 a year ago. Exports increased by 59% to 13,500 units last month compared to 8,500 units in April 2023. 

In the financial year 2024, Hyundai Motor India was the second largest carmaker after Maruti Suzuki in terms of passenger sales volumes. The company earned a revenue of Rs 60,000 crore with a profit of Rs 4,653 crore in FY23. It is highest among non-listed carmakers in India.