Indian staff assemble automobiles at Hyundai Motor’s manufacturing unit in Chennai, Tamil Nadu, India. (Photo offered by Hyundai Motor)

Hyundai Motor India is poised to make historical past with its upcoming preliminary public providing (IPO), probably elevating as much as $3.5 billion, which might mark the biggest IPO in Indian inventory market historical past. The South Korean automotive large’s Indian subsidiary is predicted to go public in September or October, in accordance with Bloomberg.

Last month, Hyundai Motor submitted a Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI), outlining plans to promote as much as 142.2 million shares, equal to 17.5% of its Indian subsidiary. This public sale will contain present shares with out issuing new ones. Sources point out that Hyundai Motor goals to lift at the very least $3 billion (roughly 4.2 trillion gained) by way of the IPO, with the quantity probably reaching $3.5 billion (roughly 4.9 trillion gained).

The earlier report for the biggest IPO within the Indian inventory market was set by the Life Insurance Corporation of India in 2022, which raised $2.5 billion. If Hyundai Motor India’s IPO reaches its higher goal, it is not going to solely surpass this report but in addition develop into the biggest IPO in Asia lately.

Hyundai Motor established its Indian subsidiary in 1996 and entered the Indian vehicle market in 1998 by mass-producing its first mannequin, the Santro, at its Chennai plant in Tamil Nadu. Over the years, Hyundai Motor India has grown to develop into the second-largest vehicle producer within the nation by gross sales, trailing solely Maruti Suzuki. Last yr, Hyundai Motor produced 765,000 items in India, whereas its sister firm Kia produced 319,878 items, totaling 1,084,878 items mixed.

Local media had beforehand reported that the IPO of Hyundai Motor India could possibly be round $3 billion. However, latest reviews counsel that the determine could possibly be as excessive as $3.5 billion. Hyundai Motor has not offered any feedback concerning the IPO.

The Indian vehicle market is among the largest globally, pushed by a quickly rising center class and growing demand for private automobiles. The trade is very aggressive, with main gamers like Maruti Suzuki, Tata Motors, and Mahindra & Mahindra vying for market share. Hyundai Motor India’s vital manufacturing capability and market presence underscore its significance on this aggressive panorama.

Understanding the mechanics of an IPO, together with phrases like Draft Red Herring Prospectus (DRHP) and the position of regulatory our bodies like SEBI, is essential for appreciating the steps Hyundai Motor India has taken. The DRHP is a preliminary registration doc that corporations should file with SEBI earlier than going public, detailing the corporate’s enterprise operations, financials, and the phrases of the providing.

Source link