Hyundai Motor India has received approval for its $3 billion initial public offering (IPO) from Securities and Exchange Board of India (SEBI) and may be all set for an October launch. All eyes have been peeled for what is expected to be India's biggest-ever IPO, possibly surpassing Life India Insurace's (LIC) $2.7 billion listing in 2022.

Hyundai Motor India had filed draft red herring prospectus (DRHP) with SEBI in the month of June, targeting a valuation of around $18 billion-$20 billion. “The objects of the offer are to carry out the Offer for Sale of up to 142,194,700 Equity Shares of the face value of ₹10 each by the Promoter Selling Shareholder and to achieve the benefits of listing the Equity Shares on the Stock Exchanges. Further, our Company expects that listing of the Equity Shares will enhance our visibility and brand image and provide liquidity and a public market for the Equity Shares in India," the DHRP noted.

Hyundai Motor India is being advised by Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital and Morgan Stanley. Law firm Shardul Amarchand Mangaldas is the company counsel.

Lookback at Hyundai India journey

Hyundai Motor India Limited or HMIL is a wholly-owned subsidary of Hyundai Motor Company of South Korea. HMIL was established in 1996 at a time when only a handful of players existed in the Indian car market - Maruti Suzuki, Hindustan, Premier, Tata Motors and Mahindra.

While relatively unknown in a very small market at the time, HMIL managed to establish a firm footing by establishing a factory in Tamil Nadu and targeting the small-car segment, driving out the Santro which was launched in September of 1998. Such was the success of the model that it catapulted HMIL to the position of country's second-largest car manufacturer.

Over the past several years, Hyundai has also managed to become the country's largest exporter of cars and has diversified its portfolio for the domestic market. So while the likes of Santro, i10 and Accent no longer exist, there is a firm focus on SUVs.

The current portfolio of the company in India ranges from Grand i10 NIOS, Aura sedan and i20 hatchback to Alcazar, Tucson and the all-electric Ioniq 5. The Hyundai Creta, however, is the best-selling model from the company and dominates the mid-size SUV space. First launched in 2015, there are over 1.1 million units of Creta on Indian roads.

Read Also: Ultraviolette begins exporting F77 Mach 2 electric motorcycles to Europe

HOW DID YOU LIKE THIS ARTICLE? CHOOSE YOUR EMOTICON !