It seems the wait for Hyundai Motor India Limited’s (HMIL) initial public offering (IPO) is over. The company is scheduled to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) today.

Sources close to the development told businessline that the company may file the DRHP late afternoon on Friday.

The country’s second-largest passenger vehicle maker has been gearing up for an IPO for months, and according to analysts, it is set to make a significant impact in the Indian financial market with its IPO.

Interestingly, HMIL will be the first initial share sale by an automaker in India since Maruti Suzuki India Limited’s (MSIL) listing in 2003, and it is also expected to be one of the largest IPOs in India’s history.

India is Hyundai’s third largest revenue generator after the US and South Korea, and it is opting for an IPO to capitalise on the growing market potential in India.

Hyundai’s Executive Chair Euisun Chung and CEO Chang Jae-Hoon also visited India recently (in April) and held a series of meetings regarding the IPO. The company has been operating in India since 1997, with manufacturing facilities in Tamil Nadu and an upcoming plant in Talegaon (Maharashtra).

Once the DRHP is filed, the market regulator is expected to take two months to give the final approval, after which the company can ring a bell on the Indian stock exchange.

Hyundai has roped in investment banks such as Kotak Mahindra, Citibank, Morgan Stanley, JP Morgan, and HSBC to smoothen its entry into the public markets and make it successful.

According to analysts, the company is targeting a valuation of $22-$28 billion for the Indian IPO, which is expected to involve the sale of 15-20 per cent of the parent company’s stake as an offer for sale.

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