Shares Of Hyundai Motor Jump As It Files For India Unit IPO Worth $3 Billion
Date
6/17/2024 12:30:09 AM
(MENAFN- IANS) Seoul, June 17 (IANS) Shares of Hyundai Motor, South Korea's leading carmaker, jumped here on Monday as it confirmed that its India unit has filed for an initial public offering (IPO) to raise around $3 billion (Rs 25,000 crore).
Hyundai Motor surged 6.34 per cent to 285,000 won (US$206) shortly after opening on the South Korean exchange, marking a fresh 52-week peak.
The stock pared early gains to 279,000 won as of 10:30 a.m. (South Korean time), reports Yonhap news agency.
Earlier in the day, Hyundai Motor said in a regulatory filing that its India unit submitted IPO documents to an Indian regulator.
Hyundai Motor said that a listing of its India unit will be determined after India's regulatory body reviews, without elaborating further.
Hyundai Motor India filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an IPO.
“The objects of the offer are to carry out the Offer for Sale of up to 142,194,700 (over 142 million) Equity Shares of the face value of Rs 10 each by the Promoter Selling Shareholder and to achieve the benefits of listing the Equity Shares on the Stock Exchanges," according to the DRHP.
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," Hyundai Motor India's DRHP added.
If the listing gets the nod from the regulator, it will be the country's biggest IPO (a pure offer for sale by the promoter) after the state-owned Life Insurance Corporation of India's (LIC) $2.7 billion listing in 2022.
In FY24, Hyundai Motor India was the country's second-largest carmaker after Maruti Suzuki (in terms of passenger sales volumes).
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