South Korean auto giant Hyundai Motor Co's Indian arm Hyundai Motor India Limited is one step closer to launching its proposed initial public offer of around $3 billion, with market regulator Sebi giving the go ahead for the mega issue post the filing of draft papers in June, multiple persons in the know told Moneycontrol on the condition of anonymity.

"The regulator's final observations have come in. This record breaking IPO is likely to be launched in October," said one of the persons above.

Moneycontrol has sent an email query and could not elicit an immediate comment from Hyundai Korea and will update this article as soon as it hears from the firm.

If the listing plans fructify, this deal, a pure OFS or offer for sale by the promoter, would be India Inc's biggest-ever IPO and beat the earlier record set by state-owned LIC's $2.7 bn listing in 2022.

On June 15, the Indian unit of the auto giant filed its draft red herring prospectus (DRHP) with the regulator, targeting a valuation of around $18 billion-$20 billion.

"The objects of the offer are to carry out the Offer for Sale of up to 142,194,700 Equity Shares of the face value of Rs 10 each by the Promoter Selling Shareholder and to achieve the benefits of listing the Equity Shares on the Stock Exchanges," said the DRHP. "Further, our Company expects that listing of the Equity Shares will enhance our visibility and brand image and provide liquidity and a public market for the Equity Shares in India."

Hyundai Motor India Limited was India's second largest carmaker after Maruti Suzuki in FY24 in terms of passenger sales volumes.

The share price of rival Maruti Suzuki has risen by 20.25 percent in the last one year. The market leader has a market cap of around Rs 4,00,000 crore or nearly $48 billion.

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Published-September 24, 2024 / 22:29 IST.