Hyundai Motor India Ltd. has received a crucial approval from the Securities and Exchange Board of India (SEBI) for its much-anticipated initial public offering (IPO).
The IPO will see the South Korean auto giant offload up to 142,194,700 equity shares, each priced with a face value of Rs 10, in an offer for sale that could potentially raise around 25,000 crore (approximately $3 billion).
According to sources cited by CNBC-TV18, Hyundai India is eyeing a launch date in the first fortnight of October. If successful, this IPO would eclipse Life Insurance Corporation (LIC) of India’s record-setting offering, which raised around $2.45 billion.
The entire IPO will be an offer for sale by Hyundai Motor Company, the automaker’s promoter and primary shareholder. The 17.50% of equity shares on offer will significantly broaden the ownership base and is seen as a strategic move to enhance Hyundai Motor India’s footprint in the competitive Indian market, while simultaneously creating value for shareholders.
With the SEBI nod in hand, the company is poised to further bolster its position as the second-largest player in India’s passenger vehicle market, trailing only Maruti Suzuki.
Hyundai is expected to reveal more details about the IPO’s pricing and schedule in the coming weeks, as anticipation continues to build around one of the country’s largest IPOs to date.