Hyundai Motor India Ltd (HMIL), the Indian arm of South Korean automaker Hyundai, has filed preliminary papers with Sebi to launch an initial public offering (IPO).
The company's IPO, if it goes through, would be the largest in India, surpassing LIC's share-sale of Rs 21,000 crore.
The proposed IPO is entirely an offer for sale (OFS) of 142,194,700 equity shares by Hyundai Motor Company, with no fresh issue component, according to the draft red herring prospectus (DRHP).
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In February this year, sources had confirmed that the parent, Hyundai Motor Company is looking to raise at least USD 3 billion (around Rs 25,000 crore) through an IPO. It may dilute 15-20 per cent stake in HMIL to raise funds, the sources added.
Since the public issue is completely an OFS, Hyundai Motor India Ltd, the second largest carmaker in India after Maruti Suzuki India, will not receive any proceeds of the IPO.
This development marks a significant milestone for the Indian industry as it will be the first initial share-sale by an automaker in over two decades, following Maruti Suzuki's listing in 2003.
Earlier this week, electric two-wheeler company Ola Electric received Sebi's clearance to raise funds through an IPO.
In its draft papers, HMIL said it expects that the listing of the equity shares "will enhance our visibility and brand image and provide liquidity and a public market for the shares".
HMIL commenced operations in India in 1996 and currently sells 13 models across segments.