Hyundai Motor India is intending to launch an IPO valued at around Rs 25,000 crore.

 Hyundai Motor India Limited (HMIL) intends to reduce its ownership by around 17.5% through an initial public offering (IPO) to raise approximately $3 billion (roughly Rs 25,000 crore).

India is the initial market, aside from South Korea, where any division of the car company is being listed. If it is successful, the IPO revenue will exceed LIC's Rs 21,000 crore share sale, creating a new record in India.

This occasion will be a major achievement for the Indian car industry, being the first IPO by a car maker since Maruti Suzuki went public in 2003. According to sources, HMIL, the second biggest car manufacturer in India following Maruti Suzuki, intends to offload about 140 million of its 800 million shares. HMIL did not provide a statement in response to Business Standard's inquiry regarding this issue.

Citi, HSBC Securities, JPMorgan, Kotak Mahindra Capital, and Morgan Stanley are reportedly guiding the deal, while Shardul Amarchand Mangaldas is serving as the legal counsel for the company. It is anticipated that the company will soon submit the draft red herring prospectus (DRHP) to the Securities and Exchange Board of India for approval. Industry analysts indicated that the funds might be utilized by HMIL towards its Indian capital expenditure plan, estimated to be approximately Rs 32,000 crore in the next decade.

The company's profits after tax (PAT) increased twofold over five years, reaching Rs 2,124 crore in FY18, although experiencing a drop to Rs 1,847 crore in FY21 due to the pandemic.

HMIL plans to invest Rs 6,000 crore in the recently acquired plant in Talegaon from General Motors and Rs 26,000 crore in Tamil Nadu over the next decade for various purposes such as expanding production, creating a components ecosystem, manufacturing electric vehicles, building charging infrastructure, and enhancing skill development.

According to data from the Society of Indian Automobile Manufacturers (Siam), HMIL sold 614,717 passenger vehicles in India in 2023-24, marking an 8.3 % growth compared to the previous year. The South Korean car manufacturer is the second-largest company in India, holding a 14.6 % market share, with Maruti Suzuki leading at 41.7 % in FY24.