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Hyundai Motor India files for IPO; To dilute 17.5% stake

Hyundai aims to raise around US$2.5-3 billion at a valuation of up to US$30 billion.

Hyundai Motor India has filed a draft red herring prospectus (DRHP) for its upcoming Initial Public Offering (IPO) with the Securities and Exchange Board of India (SEBI).

Hyundai will be the first automaker in India to file an IPO since Maruti Suzuki in 2003 and is also expected to be the country’s biggest. 

According to media reports, Hyundai aims to raise around US$2.5-3 billion at a valuation of up to US$30 billion. Its South Korean parent company will sell up to 142 million shares, amounting to a stake of up to 17.5% in its Indian subsidiary via the “offer for sale” route.

Hyundai expects the listing to enhance its visibility and brand image in India. It would also provide liquidity and a public market for the shares.

Hyundai is the second largest carmaker in India after Maruti Suzuki. The company has two manufacturing units and has invested US$5 billion. India remains its third-biggest revenue generator in the world.

Source: ET
 
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