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Hyundai Motor India is expected to launch its ₹25,000-crore initial public offering (IPO) on October 14, PTI reported on Thursday.
Hyundai's proposed ₹25,000-crore IPO will become the largest in India, surpassing Life Insurance Corporation's (LIC) public offering of ₹21,000 crore.
The Indian arm of the South Korean automaker proposed an offer-for-sale (OFS) of 142,194,700 equity shares by its promoter, Hyundai Motor Company, with no fresh issue component, according to the company's draft red herring prospectus (DRHP) filed with Sebi in June.
Hyundai is planning to raise around $3 billion ( ₹25,000 crore) through the IPO and may dilute a 15 to 20 per cent stake to raise funds, according to the PTI report.
With the upcoming IPO, Hyundai Motor India, the second biggest carmaker in India after Maruti Suzuki, will become the first automaker in two decades to offer an initial share sale. Before Hyundai Motor India, Maruti Suzuki was listed in 2003.
As the public issue is totally an offer-for-sale, Hyundai Motor India will not get any proceeds from the IPO.
The carmaker got Sebi's nod for IPO on September 24.
The company aims to “enhance visibility and brand image and provide liquidity and a public market for the shares" through the IPO, according to the draft papers.