Hyundai’s Rs 25k cr IPO Received SEBI Nod

SEBI approves Hyundai’s draft red herring prospectus. With Rs 25,000-crore offer-for-sale, the biggest IPO in India is set to hit floors in October. The IPO prospectus was filed by the company in June 2024.

Hyundai India IPO will be the offer for sale by Korean parent of Hyundai. There will be no issuance of the company’s new shares. The company is expected to have 17% equity dilution via the offer. An estimated $3-billion offer for this 17% stake will expectedly give the company a valuation of $18 billion approx. (amounting to Rs 1.5 Lakh crore).

As per BSE, India’s largest automaker, Maruti Suzuki has a market cap of Rs 4 Lakh crore while M&M stands at Rs 3.8 lakh and Tata Motors stands at Rs 3.6 Lakh crore.

After the launch, Hyundai’s IPO raised fund will surpass LIC’s Rs 21,008-crore IPO (closed for subscription in May 2022), which was the biggest public offer to date. The IPO was followed by One97’s (parent of Paytm) public offer which raised Rs 18,300-crore IPO in November 2021, Coal India’s public offer that raised Rs 15,199-crore IPO in November 2010, and Reliance Power’s public offer which raised Rs 11,563-crore IPO in February 2008.

Hyundai has indicated an aggressive expansion plan ahead of its IPO, expecting to increase the annual production in the country by 2025 to 1 million units, with a major focus on offering affordable electronics. It is planned to be produced locally from 2025.

Rs 32,000 crore for the investments has been lined up by Hyundai in India. It includes funds required for adding the Maharashtra factory that was acquired after GM last year, to improve India's production footprint.

With Swiggy’s Rs 12,000 cr IPO too getting SEBI’s nod, the Indian IPO hotbed is going to offer investors a lot more new opportunities.

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