Hyundai Motor India Gains SEBI Nod for $3bn IPO

Hyundai Motor India, a subsidiary of Hyundai Motor Company based in South Korea, has got the green signal from SEBI (Securities and Exchange Board of India) of it’s a IPO- Initial Public Offering. The company aims to create about $3 for a firm that will be valued at $20, which is roughly equivalent to about ₹25 crore.

The company is said to break the much publicised ₹21,000 crore share sale of Life Insurance Corporation of India Ltd if this IPO did go through. This is a landmark that has the potential to be the first IPO of an automobile maker in over the twenty-two years since Maruti Suzuki Isuzu went public in 2003.

Hyundai India forms a significant position in the market and it is third largest revenue contributor to Hyundai Motors Company’s global revenue after America and South Korea. The car maker has committed $5 billion to India so far, which aims to commit a further $4 billion over the next ten years, as Reuters recently reported.

Some of the sources have pointed out that the record IPO will be rolled out in October once feedback on it from the regulator is made. This transaction is being advised by the investment banks which are Citigroup Inc, HSBC Securities Ltd, JP Morgan India Ltd, Kotak Mahindra Capital Company Ltd & Morgan Stanley. For the company, Shardul Amarchand Mangaldas has been appointed as the legal advisor while for the banks, Cyril Amarchand Mangaldas has been appointed and Latham and Watkins has been appointed as the international legal advisors.