We are discussing Hyundai Motor India Filed Draft Papers With SEBI to Raise $3 Billion Via an IPO:
Automobile Manufacturing Company Hyundai Motor’s Indian subsidiary, Hyundai Motor India, has filed a draft paper with market regulator SEBI to raise 3 billion USD from its Initial Public Offering (IPO). The car manufacturing company is aiming for an IPO at a valuation of 18 to 20 billion USD.
In a regulatory filing, the company mentioned that the IPO committee had finalized the allocation of 142,194,700 equity shares to promoter-selling shareholders at Rs 10 per share. Listing equity shares on the stock exchange will also provide benefits. The firm also mentioned that this listing of equity shares will enhance the overall brand image and visibility while providing a public market for equity shares in India. The company might hold a pre-IPO round later for a de-risking strategy if required due to changes in market conditions.
Law firm Shardul Amarchand Mangaldas is the company counsel with JP Morgan, HSBC Securities, Citi, Morgan Stanely, and Kotak Mahindra Capital as a sales counselor. Last month, Hyundai Motor India wanted to raise 2 to 3 billion USD by the end of June. JP Morgan, HBSC Securities, and Citi have been preliminarily engaged with the company for various high-profile deals. The company has been competing with Maruti Suzuki for the largest car manufacturer in India for this fiscal year.
The Indian market contributed over 13 percent of Hyundai’s global sales for FY23. Hyundai Motor India reported Rs 60,000 crore revenue with Rs 4,653 crore profit in FY23. The company constantly monitors its various activities in all its branches to maintain and increase its corporate value. The company plans to use these fresh proceeds from its Initial Public Offering to enhance its services for general corporate purposes and expand its network.
Conclusion
South Korean automobile manufacturing company’s Indian subsidiary, Hyundai Motor India, filed its draft papers with market regular SEBI to raise $3 billion through an Initial Public Offering. Moneycontrol mentioned that some people close to the deal mentioned that the company aims for the IPO at a $18 million to $20 million valuation. DRHP filing mentioned the offer would be carried out for 142,194,700 equity shares for a face value of Rs 10 per share. The company may hold a pre-IPO round during its late stage according to market conditions in the future.
The firm also mentioned that this listing of equity shares will enhance the overall brand image and visibility while providing a public market for equity shares in India. Hyundai Motor India was looking to raise $2 billion to $3 billion by the end of June and has finally initiated the offering this week. JP Morgan, HBSC securities, and Citi have been previously engaged with the company for various high-profile deals. The company has been competing with Maruti Suzuki as the largest automobile manufacturer in India for FY24. The startup offers various car manufacturing solutions to fulfill the market demand.
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