9 things about India's biggest IPO set to hit markets in October

Hyundai Motor India Limited, the Indian arm of South Korean auto giant Hyundai Motor Co has secured markets regulator, Sebi’s, approval to float its proposed initial public offer (IPO) of around $3 billion (around Rs 25,000).    

This record breaking Hyundai Motors IPO, considered to be India’s biggest, is expected to be launched within a few days from now in October.

On 15 June this year, Hyundai Motor India Ltd had filed a Draft Red Herring Prospectus (DRHP) with Securities and Exchange Board of India (SEBI) targeting a valuation of around $18 billion-$20 billion.

9 things about Hyundai Motor India Ltd IPO 

1 - If the listing plans fructify, Hyundai Motor India’s IPO would be India Inc’s biggest-ever and surpass the earlier record set by LIC’s share sale of Rs 21,000 crore in 2022.

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2 - In the DRHP filed by Hyundai Motor India in June, the company proposed that its public offering is entirely an Offer-for-Sale (OFS) of 142,194,700 equity shares by promoter Hyundai Motor Company, with no fresh issue component.            

3 - The face value of Equity Shares will be Rs 10 each.

4 - Hyundai Motor India also expects that listing of the Equity Shares will enhance its visibility and brand image as well as provide liquidity and a public market for the Equity Shares in India.

5 - Hyundai IPO will be an offer for sale (OFS) of up to 142 million shares, or a 17.5 per cent stake, by its South Korean parent.  

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6 - Hyundai Motor India would be the first car manufacturer to go public in India in two decades, following Maruti Suzuki’s IPO in 2003.

7 - Hyundai Motors India is being advised by Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital and Morgan Stanley for the issue.

8 - Law firm Shardul Amarchand Mangaldas is acting as the company counsel, while Cyril Amarchand Mangaldas is the banks’ counsel.  

9 - Latham and Watkins is the international counsel of the company.