Hyundai Motor India IPO 2024, Check Here

Hyundai Motor India IPO 2024 The world’s third largest auto original equipment manufacturer (OEM) is Hyundai Motor Company. Everyone knows Hyundai Motors, they manufacture and sell four-wheeler passenger vehicles with new technology and reliable and innovative features. They deal in 13 models of all vehicles like sedans, hatchbacks, sports-utility vehicles (SUVs) and batteries Electric Vehicles (EV).Now, Hyundai is offering something IPO Shares to raise funds from the public. They are aiming to raise $3 billion, which would mark it as one of the largest IPOs in India’s history. However, the exact amount to be raised has not been given in the Draft Red Herring Prospectus (DRHP) submitted to the Securities and Exchange Board of India (SEBI). Also, Hyundai has held talks with major investment banks including JP Morgan, Morgan Stanley, Citi, and Bank of America to manage the IPO. However, no formal appointment has been made yet.

 

Hyundai Motor India is going to launch an IPO soon. They have already submitted the papers to SEBI. They are planning to launch an IPO of around $3 billion, which is expected to be India’s largest IPO record after Life Insurance Corporation of India’s $2.5 billion issue in 2022.

Hyundai Motor India IPO 2024

Hyundai Motor India IPO has kicked off. But no information has been provided about the size of the IPO yet. According to bankers, they are aiming to raise around $2.5 – $3 billion in the upcoming IPO issue, which will value the company at $25-30 billion. As per the DRHP, the proposed IPO is an OFS of 142,194,700 equity shares through Hyundai Motor Company, with no fresh issue component. Hence, they will be offering 142.2 million equity shares, which is 17.5 per cent of the post-offer paid-up equity share capital. Hence, it is said to be purely an IPO issue.

  • company: Hyundai Motor Company
  • Size of IPO: About $3 billion
  • Evaluation: target of around $30 billion for Indian unit
  • Objective: Expanding operations in India, particularly in electric vehicles (EVs) and related infrastructure
  • Expected Market Impact: It is expected to become India’s biggest IPO in 2022, surpassing Life Insurance Corporation’s $2.7 billion IPO.

Strategic Reasons for Hyundai Motor India IPO 2024

  • Expensive in India:- Companies issue IPOs to go public from private and aim to raise funds. Hyundai Motor Company plans to accelerate its growth in India with the IPO. Hyundai Motor Company has been active in the auto market for 25 years and is the second largest car manufacturer in India in terms of sales. Hyundai Motor Company plans to become the first such company and wants to expand its presence in the Indian market.
  • Reducing dependency on parent company:- Hyundai company wants to become independent. By issuing IPO shares and raising funds locally they are trying to reduce their dependence on the parent company for capital and improve their financial position. Having a balanced financial position makes them financially independent and flexible.
  • Competition with local and global rivals:- Hyundai is well positioned in the Indian market, but with increasing competition from local companies like Tata Motors and the expected entry of Tesla in the Indian market, they need to increase their presence. Hyundai is planning to strengthen its presence especially in the EV sector with this IPO release.

Use of Hyundai Motor India IPO Proceeds

  • Electric Vehicle (EV) Development
  • Charging infrastructure
  • Battery Pack Assembly Unit
  • Manufacturing capacity is costly

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