Hyundai’s Historic IPO Bid: A Game-Changer for India’s Automotive Sector

Hyundai’s Indian arm is planning to file preliminary papers with Sebi in order to raise at least USD 3 billion (around Rs 25,000 crore) through an initial public offering. If the IPO proceeds, it would be the largest in India, surpassing LIC’s share sale of Rs 21,000 crore. This would mark a significant milestone for the Indian industry as the first automaker to go for an initial share sale in over two decades, following Maruti Suzuki’s listing in 2003. The proposed IPO would see Hyundai Motor India Ltd (HMIL) potentially diluting 15-20% stake to raise funds in the range of USD 3.3-5.6 billion. The company is expected to file its papers with Sebi soon. When reached for comment, HMIL declined to provide any statement. HMIL began operations in India in 1996 and currently sells 13 models across segments. In May 2024, HMIL reported a 7% year-on-year increase in total sales at 63,551 units. Domestic dispatch of vehicles to dealers saw a 1% rise to 49,151 units last month compared to the previous year, while exports grew by 31% in May to 14,400 units.