Hyundai India is set to file its DRHP today for an IPO worth Rs 20,650-24,780 crore, potentially selling a 17.5% stake.

Hyundai Motor India is gearing up to file the Draft Red Herring Prospectus (DRHP) for its upcoming IPO as early as June 14, 2024, according to CNBC TV18. Citing anonymous sources, the report indicates that the South Korean automaker aims to raise up to $3 billion (approximately Rs 24,780 crore) by selling a 17.5% stake in its Indian unit through an offer for sale. No new shares will be issued in this process.

The move marks a significant step for Hyundai in the Indian stock market, highlighting the company’s confidence in its growth prospects within the country. This IPO is expected to attract considerable attention from investors, given Hyundai’s strong market presence and reputation in India.

Hyundai Motor India has consistently been one of the leading players in the Indian automotive industry, known for its innovative products and robust sales performance. The funds raised through this IPO will likely be utilized to enhance its market footprint and drive further growth.

The decision to sell a stake via an offer for sale, rather than issuing new shares, indicates the company’s strategy to leverage existing equity for raising capital. This approach can often be appealing to investors, as it avoids dilution of shares.

Hyundai’s planned IPO aligns with the broader trend of prominent companies tapping into the Indian stock market to fuel their expansion plans. As the automotive sector continues to evolve, Hyundai Motor India’s strategic move to go public is poised to make a significant impact on its future trajectory.

Investors in the stock market will keenly watch this development, as it represents a notable opportunity in the Indian finance landscape.