Hyundai Motor India Receives Green Light for IPO After Two Decades

Hyundai Motor India Ltd, the Indian subsidiary of Hyundai, has been approved by Sebi to launch an IPO, marking the first automaker IPO since Maruti Suzuki in 2003. The offering is an Offer-for-Sale of 142,194,700 shares by its parent company, with no new shares issued. The IPO aims to enhance visibility and brand image.

In a significant development for the Indian auto industry, Hyundai Motor India Ltd has received approval from the Securities and Exchange Board of India (Sebi) to float an initial public offering (IPO), informed sources confirmed on Wednesday.

This marks the first IPO by an automaker in India since Maruti Suzuki's 2003 listing, signaling a landmark event. The IPO will comprise an Offer-for-Sale (OFS) of 142,194,700 equity shares by Hyundai Motor Company, the South Korean parent, with no new shares issued, as per the draft red herring prospectus filed earlier in June.

The Indian arm of Hyundai, which started operations in 1996 and sells 13 models, will not receive any proceeds from this IPO. Instead, the public issue aims to bolster the company's visibility and brand image while providing market liquidity. The expected capital raise could range from USD 3.3-5.6 billion by diluting a 15-20 percent stake.

(With inputs from agencies.)