Hyundai Motors IPO:  Hyundai Motor India Ltd., the Indian arm of South Korean automaker Hyundai, has received regulatory approval to launch an initial public offering (IPO), people familiar with the development said on Wednesday. The development marks a significant milestone for the Indian automobile industry, as it is the first automaker's initial public offering in more than two decades since the listing of Japanese automaker Maruti Suzuki in 2003.

According to the draft red herring prospectus (DRHP) filed in June, the proposed IPO of Hyundai Motor India is entirely an offer-for-sale (OFS) of 142,194,700 equity shares by promoter Hyundai Motor Company, with no fresh issue component. The South Korean parent has already diluted some stake through the OFS route.

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Since the public issue is fully an OFS, Hyundai Motor India Ltd., India's second-largest carmaker after Maruti Suzuki India, will not receive any proceeds from the IPO. People familiar with the development said that Hyundai Motor India has received an email from the Securities and Exchange Board of India (SEBI) approving the IPO.

In its draft paper, Hyundai Motor India said it expects the listing of the equity shares to "enhance our visibility and brand image and provide liquidity and a public market for the shares."

In February this year, sources confirmed that the South Korean automaker was looking to raise at least $3 billion through an IPO. It could dilute its stake by 15-20 per cent and raise between $3.3-5.6 billion, sources said.

Hyundai Motor India started operations in India in 1996 and currently sells 13 models across segments. Last month, electric two-wheeler company Ola Electric Mobility was listed on the bourse after completing its Rs 6,145 crore initial public offering.

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(With PTI's Input)