Hyundai Motor plans to launch what could be Indias biggest IPO: From competition to market share, here is everything you need to know

Hyundai Motor IPO: Hyundai Motor India Ltd (HMIL), the Indian arm of South Korean automaker Hyundai, has filed preliminary papers with Sebi to launch an initial public offering (IPO). The company's IPO, if it goes through, will be the largest in India, surpassing LIC's mega share sale worth Rs 21,000 crore.

Where does Hyundai stand in the Indian auto market? 

According to Zee Business research, Hyundai's entry on the bourses will increase competition for various auto players like Maruti Suzuki, Tata Motors, and Mahindra & Mahindra (M&M).

Maruti Suzuki tops the market share list with a 40.7 per cent share, followed by Hyundai Motor with a 14.2 per cent share, Tata Motors with 13.6 per cent, and Mahindra & Mahindra (M&M) with 10.8 per cent, according to the research.

Further, Hyundai Motor India's IPO will be the biggest in history if it gets approval from market regulator Sebi, surpassing Life Insurance Corporation of India's.

LIC rolled out its IPO, to raise Rs 21,008 crore, in February 2022. 

Take a look at the biggest Indian IPOs so far: 

About Hyundai IPO 

Hyundai's IPO is entirely an offer for sale (OFS) of 142,194,700 equity shares, with no fresh issue component, according to the draft red herring prospectus (DRHP).

Since the public issue is completely an OFS, Hyundai Motor India Ltd - the second largest carmaker in India after Maruti Suzuki India - will not receive any proceeds from the IPO.

This development marks a significant milestone for the Indian industry as it will be the first initial share sale by an automaker in over two decades, following Maruti Suzuki's listing in 2003.

In its draft papers, Hyundai Motors India said it expects that the listing of the equity shares "will enhance our visibility and brand image and provide liquidity and a public market for the shares".

Hyundai Motors India commenced operations in India in 1996 and currently sells 13 models across segments.

It reported a 7 percent year-on-year increase in total sales at 63,551 units in May 2024 against 59,601 units in the corresponding month last year. Domestic dispatch of vehicles to dealers saw a one per cent rise to 49,151 units last month from 48,601 units in the year-ago period.

Exports grew 31 per cent in May to 14,400 units compared to 11,000 units a year ago.

(With inputs from agencies)

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