India’s biggest public offering will be an offer for sale (OFS) of 142.2 million shares or 17.5% stake by South Korean parent company Hyundai Motor Company.
ET had first reported on February 5 that Hyundai was evaluating plans to list its local unit to take advantage of the IPO boom in India. ET had reported that the carmaker was looking at selling 15-20% of its stake through OFS.
In 2023, India’s Hyundai Motor had a 13% share of global unit sales and contributed 6% to revenue and profit. Bankers have indicated that the IPO is likely to be launched in the next four to six months, subject to SEBI approval and market conditions.
State-owned Life Insurance Corporation of India’s ₹21,008-crore public issue, launched in May 2022, is India’s largest IPO to date. In November 2021, Paytm’s parent One 97 Communications raised ₹18,300 crore, while Vodafone raised ₹18,000 crore through a follow-on public offering (FPO) in April this year.
ETMarkets.comHMIL is valued at around $18 billion or ₹1.45 lakh crore. Maruti Suzuki, India’s largest passenger car maker, is currently valued at ₹4.04 lakh crore.
Mahindra & Mahindra and Tata Motors are valued at Rs 3.64 lakh crore and Rs 3.3 lakh crore, respectively.
Hyundai’s India unit has a market share of 14.5% in the passenger car segment in the recently ended FY24, while Maruti Suzuki has 41.7% and Tata Motors has 13.8%, according to data from the Society of Indian Automobile Manufacturers (SIAM).
According to the DRHP, HMIL sold 584,000 vehicles between April and December last year, of which 130,000 were exported. The company reported revenue of Rs 52,158 crore for the nine months ended December 2023 as against Rs 60,308 crore in FY23. Net profit for the nine months ended December 2023 was Rs 4,383 crore as against Rs 4,709 crore in the previous fiscal. Kotak Mahindra Capital, Citi, HSBC Securities, JP Morgan and Morgan Stanley are the bankers to the public offer.
HMIL leads the mid-size SUV sub-segment with the Creta, launched in 2015. Intermittent upgrades to the model over the years have helped it retain the top spot, giving it a market share of 30% in FY24 despite stiff competition from rivals.
The company’s Chennai manufacturing plant had an annual production capacity of 824,000 units as of March 31. According to Crisil, HMIL has been India’s largest passenger vehicle exporter from FY05 to the first 11 months of FY24.
The company has exported 3.53 million passenger vehicles to over 150 countries as of December 31, 2023 since its entry into India in 1996.
Hyundai has invested $5 billion in its Indian operations and has pledged to invest an additional $4 billion over the next 10 years.
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