Sebi approves Hyundai Motor India’s Rs 25K cr and Swiggy’s Rs 10K cr IPOs

new delhi: Hyundai MotorIndia Ltd, the Indian arm of South Korean automaker Hyundai, and food andgrocery delivery major Swiggy have received capital markets regulator Sebi’s approval to float initial public offerings (IPOs), people familiar with thedevelopment said on Wednesday.

Sources had previously stated that theSouth Korean automaker is looking to raise at least $3 billion (about Rs25,000 crore) through an initial share sale, while the IPO of Swiggy has beenpegged at over Rs 10,000 crore.Hyundai Motor India’s IPO, if it goes through, would be the largest in India, surpassing LIC’s share sale of Rs21,000 crore.

The country’s IPO market is thriving, with around 60 main board companies having launched their initial share sales this year so far.

According to the Draft Red Herring Prospectus (DRHP) filed in June, Hyundai Motor India’s proposed IPO is entirelyan Offer-for-Sale (OFS) of 142,194,700 equity shares by promoter Hyundai Motor Company, with no fresh issue component.This development marks a significant milestone for the Indian industry, as it is the first automaker’s initial sharesale in over two decades, following Japanese automaker Maruti Suzuki’s listingin 2003.

The South Korean parent is diluting someof the stake through the OFS route. Since the public issue is completely anOFS, Hyundai Motor India Ltd, which is the second largest carmaker in Indiaafter Maruti Suzuki India, will not receive any proceeds from the IPO.

People familiar with the development said that Hyundai Motor India has received an e-mail from the Securities and Exchange Board of India (Sebi) approving its IPO.In its draft papers, Hyundai Motor India stated that it expects that the listing of the equity shares “will enhanceour visibility and brand image and provide liquidity and a public market forthe shares”.

In February this year, sources confirmed that the South Korean automaker is planning to garner at least USD 3 billionthrough an IPO. It may dilute a 15-20 per cent stake to raise funds in therange of $3.3-5.6 billion. Hyundai Motor India commenced operationsin India in 1996 and currently sells 13 models across segments.

Last month, electric two-wheeler company Ola Electric Mobility got listed on the bourses after successful completion ofits Rs 6,145-crore initial share sale.With regards to Swiggy, the food delivery major filed its offer document on April 30 through the confidential pre-filing route. Under the confidential filing process, Sebi reviews confidential DRHP and provides comments on it. Thereafter, the company going public is required to file an update to the confidential DRHP(UDRHP-I)

after incorporating the regulator’s comments.