Stage Set For India’s Largest IPO

New Delhi: Hyundai Motor India Ltd, the Indian arm of South Korean automaker Hyundai, and food and grocery delivery major Swiggy have received capital markets regulator Sebi’s approval to float initial public offerings (IPOs), people familiar with the development said on Wednesday. Sources had previously stated that the South Korean automaker is looking to raise at least $3 billion (Rs25,000 cr) through an initial share sale, while the IPO of Swiggy has been pegged at over Rs10,000 crore. Hyundai Motor India’s IPO, if it goes through, would be the largest in India, surpassing LIC’s share sale of Rs21,000 crore. The country’s IPO market is thriving, with around 60 main board companies having launched their initial share sales this year so far. According to the Draft Red Herring Prospectus (DRHP) filed in June, Hyundai Motor India’s proposed IPO is entirely an Offer-for-Sale (OFS) of 142,194,700 equity shares by promoter Hyundai Motor Company, with no fresh issue component.

This development marks a significant milestone for the Indian industry, as it is the first automaker’s initial share sale in over two decades, following Japanese automaker Maruti Suzuki’s listing in 2003. The South Korean parent is diluting some of the stake through the OFS route. Since the public issue is completely an OFS, Hyundai Motor India Ltd, which is the second largest carmaker in India after Maruti Suzuki India, will not receive any proceeds from the IPO. People familiar with the development said that Hyundai Motor India has received an e-mail from the Securities and Exchange Board of India (Sebi) approving its IPO.