South Korean auto giant Hyundai Motor’s Indian unit, Hyundai Motor India Ltd (HMIL) submitted the draft papers for its upcoming IPO with the regulators on Saturday. This listing could mark the biggest seen in the country, media reports said.
The auto firm filed the preliminary papers for its intial public offering (IPO) with the Securities and Exchange Board of India (SEBI) for the IPO, reported PTI. The proposed maiden offer comprises an offer-for-sale (OFS) of 142,194,700 equity shares by Hyundai Motor Co, without any fresh component, the draft red herring prospectus (DRHP) revealed.
Notably, the issue could surpass the LIC’s maiden issue of Rs 21,000 crore. Earlier in February this year, media reports said that the parent entity, Hyundai Motor Co, plan to raise about $3 billion via an IPO.
The firm could be looking to dilute its 15 per cent to 20 per cent share in HMIL to raise funds. As the maiden offer is an OFS, HMIL wouldn’t receive any proceeds from the listing.
“The objects of the offer are to carry out the offer for sale of up to 142,194,700 equity shares of the face value of Rs 10 each by the Promoter Selling Shareholder and to achieve the benefits of listing the equity shares on the stock exchanges. Further, our company expects that listing of the Equity Shares will enhance our visibility and brand image and provide liquidity and a public market for the equity shares in India,” the draft read.
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The listing could mark a major milestone in the Indian auto industry as this would be the first share sale by an auto player in more than two decades. The last big listing was done by Maruti Suzuki in 2003. Earlier in the week, Ola Electric also received nod from the regulator to raise funds via a maiden offer.
