Sebi has approved an initial public offering for Hyundai Motors India, the Indian arm of the South Korean automaker company. Sources confirmed this on Wednesday.
The information came as a significant development in the automaker industry in India. Moreover, this is the first initial share sale in two decades by a Japanese automaker from Maruti Suzuki listings till 2003.
According to fresh red hearing prospects filled in June, Hyundai Motors proposed an IPO, which will be entirely based on the OFS offer For Sale (OFS) of 142,194,700 equity shares in India. Moreover, the South Korean entity is extending its share through the OFS route.
Maruti Suzuki, the largest carmaking company in India, has not received an IPO yet; an ample opportunity has been knocked on the doors of the second largest carmaking company in India, Hyundai India.
Sources confirmed that Hyundai India received an email from Sebi approving its IPO.
”Equity share will enhance our visibility and brand image and provide liquidity and a product market for their shares,” a draft paper of Hyundai Motors India stated this in its listings in 2003.
Official sources confirmed in February this year that Hyundai Motors would raise at least 3 billion USD through an IPO. Moreover, the sources added that it may dilute 15-20 percent of funds to increase the range from 3.3 to 5.6 billion USD.
Hyundai Motors is one of the oldest companies in India. It started its operation in 1996 and currently sells 13 models of car segments across India.
Ola Electric Mobility Cabs was listed on the bourses after completing its Rs 6,145-crore initial share last year.