Hyundai Motor India Subsidiary Files for IPO... Largest Ever IPO Worth 4 Trillion KRW

"Up to $3 Billion Funding Possible"

Hyundai Motor India Limited has submitted an initial public offering (IPO) application to the Securities and Exchange Board of India (SEBI).

According to Bloomberg on the 15th (local time), Hyundai Motor India Limited submitted documents to SEBI stating that it will IPO up to 142 million shares, which is 17.5% of the total shares, out of 812 million shares held by its parent company Hyundai Motor.

[Image source=Reuters Yonhap News]

This IPO is a public sale method that does not issue new shares but sells part of the existing shares held by Hyundai Motor in the market.

Foreign media expect this IPO to be the largest ever in the Indian stock market. Hyundai Motor will raise up to $3 billion (approximately 4.167 trillion KRW) through the IPO. The largest IPO in India until now was the 2022 Life Insurance Corporation of India IPO, which raised about $2.5 billion (approximately 3.4725 trillion KRW).

In the draft prospectus submitted on the same day, Hyundai Motor India Limited stated, "This listing will enhance the brand image" and "It will provide opportunities to supply liquidity to the stock market and activate the public trading market."

Hyundai Motor India Limited is considered the second-largest automobile manufacturer in India by sales, following Maruti Suzuki. Foreign media analyzed that with this stock listing, Hyundai Motor India Limited can raise funds independently without relying on its Korean parent company, thereby securing a stronger position compared to its competitors.