In a bid to take on the Indian market completely, South Koreas Hyundai Motors is all set to offload up to a 17.5 percent stake in an initial public offering (IPO) of its India unit. According to the sources, the auto company filed papers for the same to the Securities and Exchange Board of India (SEBI) on June 15. With this IPO, the carmaker aims to raise $2.5 to $3 billion via initial share sale.Indias largest-ever IPOAccording to Reuters, the carmaker Hyundai Motors will offer up to 142 million shares for sale in the IPO from a total of 812 million. Apart from this, a portion of the South Korean parent firms ownership in the wholly-owned business will be sold to retail and other investors through an offer for sale mechanism. The company will not issue additional shares during the IPO.It is worth noting that this would be the first IPO by an auto manufacturer in India over the last 20 years when Maruti Suzuki came with an IPO and went public in 2003. Notably, Hyundai is the second largest car manufacturer after Maruti Suzuki, which is known for its style and feature-packed vehicles.Hyundai looks at a crucial market for overall growth, where the company has invested over $5 billion in two manufacturing units and has commitment to pump up $4 billion over the next decade through this. Though the company has not disclosed any details about the initial public offering (IPO) or the companys valuation, sources claim that Hyundai aims to raise $2.5-$3 billion with this at a valuation of $30 billion. The company which entered India almost 28 years ago has won over buyers with its affordable cars such as Santro and Creta. It is also planning to come with electric vehicles and establish charging stations. Meanwhile, it is important to note that investment banks like Citi, JP Morgan, HSBC, Morgan Stanley and Indias Kotak have advised Hyundai on its IPO.
