Hyundai Motor India’s IPO Gets Sebi's Approval

The Securities and Exchange Board of India (Sebi) has approved Hyundai Motor India for its eagerly awaited initial public offering (IPO).

The South Korean automotive behemoth will sell up to 142,194,700 equity shares in the IPO, with a face value of Rs 10. The sale may potentially generate around Rs 25,000 crore, or $3 billion.

CNBC-TV18 quoted sources indicating that Hyundai India is targeting an October launch date in the first two weeks of October. If this IPO is successful, it will surpass the record-breaking $2.45 billion raised by Life Insurance Corporation (LIC) of India.

Hyundai Motor Company, the promoter and largest shareholder of the carmaker will make an offer for sale during the entire IPO. In a strategic effort to strengthen Hyundai Motor India's position in the competitive Indian market and generate value for shareholders, the offer of 17.50 per cent of equity shares will greatly expand the ownership base.

With the Sebi approval in hand, the business is well-positioned to strengthen its position as the second-biggest participant in the Indian passenger car industry, after Maruti Suzuki.

As excitement grows for one of the biggest IPOs in the nation to date, Hyundai is anticipated to provide additional information in the upcoming weeks on the IPO's pricing and timeline.