Hyundai to dilute 17.5% stake in $3 billion IPOReport

Hyundai Motor is preparing to water down approximately 17.5% of its stake in its India system through a going public (IPO), reported news firm Reuters.

The South Korea-based carmaker is anticipated to submit draft documents for the IPO on Friday. Through this share sale, Hyundai intends to raise in between $2.5 billion and $3 billion, the report discussed, pointing out sources familiar with the matter.

Hyundai is presently the second-largest carmaker in India, following Maruti Suzuki India.

This IPO would be substantial as it would be the very first public offering by a carmaker in India in over 20 years, with the last one being Maruti Suzuki’s IPO in 2003.

Hyundai thinks about India its third-largest income market after the United States and South Korea. The business sees this IPO as a chance to take advantage of the growing market capacity in India.

To facilitate this IPO, Hyundai has actually employed the assistance of financial investment banks such as Kotak Mahindra, Citibank, Morgan Stanley, JP Morgan, and HSBC. These banks will help in making sure a smooth entry into the general public market and aid make the IPO effective.

The marketplace regulator, Sebi, is anticipated to evaluate the draft documents and offer its approval within 60 to 90 days. If authorized, Hyundai Motor India’s IPO might possibly be released by September or October.

In regards to sales efficiency, Hyundai reported a 7% year-on-year boost in overall sales, reaching 63,551 systems in May 2024 compared to 59,601 systems in the very same month in 2015.