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Hyundai IPO Launch Date: Hyundai Motor India Limited (HMIL), a subsidiary of Hyundai Motor Company (HMC), may miss its expected Diwali IPO launch. The company has not yet received approval from SEBI. HMIL may file a new draft red herring prospectus (DRHP). This may take several weeks, which may push the IPO launch date beyond Diwali.
This will be the biggest IPO
In June, Hyundai Motor filed papers with the Securities and Exchange Board of India (SEBI) for an IPO. This IPO will be the largest in India, bigger than the Rs 21,000 crore IPO of Life Insurance Corporation (LIC).
According to the Draft Red Herring Prospectus (DRHP), its IPO will be a full offer for sale (OFS) issue, in which Hyundai Motor Company will sell 142,194,700 equity shares. No new shares will be sold in the IPO.
How much will the share decrease
In February this year, it was announced that Hyundai Motor Company, the parent company of Hyundai Motor India, may raise at least $3 billion (about Rs 25,000 crore) through an IPO. This could reduce its stake in its subsidiary by 15-20 percent.
Hyundai's IPO is an OFS, so Hyundai Motor India Ltd, India's second-largest carmaker after Maruti Suzuki India, will not get any funds from the IPO.
In its documents, HMIL had said it expects that listing of equity shares would enhance its visibility and brand image and provide liquidity and public market for the shares.
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