Automobile Manufacturing Company Hyundai Motor’s Indian subsidiary Hyundai Motor India has  filed a draft paper with market regulator SEBI to raise 3 billion USD from its Initial Public Offering. The  car manufacturing company is aiming for IPO at valuation fo 18 to 20 billion USD. price.  

The company mentioned in a regulatory filing that the IPO committee has finalized the allocation of  142,194,700 equity shares to promoter selling shareholder at Rs 10 per share. This listing of equity  shares on the stock exchange will also give benefits. The firm also mentioned that this listing of  equity shares will enhance the overall brand image and visibility while providing a public market for  equity shares in India. The company might hold a pre-IPO round at a later stage for a de-risking  strategy if required due to changes in market conditions.  

Law company Shardul Amarchand Mangaldas is working as the company counsel with JP Morgan,  HSBC Securities, Citi, Morgan Stanely, and Kotak Mahindra Capital as sale counselor for the company.  Last month, Hyundai Motor India was looking to raise 2 to 3 billion USD by the end of June. JP  Morgan, HBSC securities, and Citi have been preliminarily engaged with the company for various high  profile deals. The company has been competing with Maruti Suzuki for the largest car manufacturer  in India for this fiscal year. 

Indian market contributed over 13 percent of Hyundai’s global sales for FY23. Hyundai Motor India  reported Rs 60,000 crore revenue with Rs 4,653 crore profit in FY23. The company is constantly  checking on its various activities in all its branches to maintain and increase its corporate value. The  company is planning to use these fresh proceeds from its Initial Public Offering to enhance its  services, for general corporate purposes, and to expand its network.  

Conclusion: 

South Korean automobile manufacturing company’s Indian subsidiary Hyundai Motor India filed its  draft papers with market regular SEBI to raise $3 billion through an Initial Public Offering.  Moneycontrol mentioned that some people close to the deal mentioned that the company aims for  the IPO at a valuation of $18 million to $20 million. DRHP filing mentioned the offer will be carried  out for 142,194,700 equity shares for a face value of Rs 10 per share. The company may hold a pre IPO round during its late stage according to market conditions in the future. The firm also mentioned  that this listing of equity shares will enhance the overall brand image and visibility while providing a  public market for equity shares in India. Hyundai Motor India was looking to raise $2 billion to $3  billion by the end of June and has finally initiated the offering this week. JP Morgan, HBSC securities,  and Citi have been previously engaged with the company for various high-profile deals. The company  has been competing with Maruti Suzuki as the largest automobile manufacturer in India for FY24. The startup offers a wide range of car manufacturing solutions to fulfill the market demand.