Hyundai IPO: What do we know so far?

South Korean auto giant Hyundai Motor Corporation is planning to list its Indian unit Hyundai Motor India Limited (HMIL) and has reportedly accelerated the process for the same. Earlier, it was reported that HMIL has proposed to launch its Initial Public Offering (IPO) sometime later this year. Now, it has been revealed that the company has hired merchant banks and law firms for its India IPO. In fact, it is likely to file regulatory papers in India by May to June for an approval, reports said. Here is everything you need to know about Hyundai IPO.

The Hyundai IPO is likely to be worth around $3-3.5 billion (approximately Rs 25,000 crore), which is slated to be the largest-ever IPO in India. This could value its local operation at up to $30 billion. At present, Life Insurance Corporation of India (LIC IPO) holds the record of the county's biggest IPO worth $2.6 billion (Rs 21,000 crore). Now, let us shed some light on the key aspects of the Hyundai IPO.

Accelerating its company listing plans in the world's third-largest auto market, it has also assigned merchant bankers, such as JP Morgan, HSBC, and Citi, to advise on its speculated $3 billion India IPO. Some domestic Indian investment banks are also expected to be assigned for the same in the coming months. The fundraising by Hyundai would put the valuation of its Indian arm at more than half its market capitalisation of about $47 billion in Seoul, a report said.

The Hyundai Motor Company has chosen Shardul Amarchand Mangaldas (SAM) as counsel for the IPO of Hyundai Motor India Ltd. The global law firm Latham & Watkins has also been hired to act as international legal counsel for the IPO. Moreover, other law companies are in the race for the mandate to act as legal advisor to the merchant bankers who will manage the IPO, Moneycontrol reported.

To put it simply, the company counsel undertakes legal due diligence, advises on the Indian laws applicable to the issuer and assists in drafting the non-business sections of the offer document. Merchant bankers hire their own legal advisor for the IPO.

In 2023, Hyundai India registered highest-ever annual sales at 6.02 lakh units, reporting a growth of nine per cent over 2022. The export grew by 10 per cent to 1.63 lakh units as against 1.48 lakh units in the year-ago period. Currently, Hyundai Motor India Limited is the second largest passenger vehicle (PV) carmaker in the country with 14.9 per cent year-to-date FY24 market share, at $22-28 billion valuation.

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