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Hyundai Motor India Ltd, the Indian arm of South Korean automaker Hyundai, and food and grocery delivery major Swiggy have received capital markets regulator Sebi's approval to float initial public offerings (IPOs), people familiar with the development said on Wednesday.
Sources had previously stated that the South Korean automaker is looking to raise at least USD 3 billion (about Rs 25,000 crore) through an initial share sale, while the IPO of Swiggy has been pegged 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 Rs 21,000 crore.
The country's IPO market is thriving, with around 60 main board companies having launched their initial share sales this year so far.
Hyundai Motor India's proposed IPO is entirely an Offer-for-Sale (OFS) of 142,194,700 equity shares by promoter Hyundai Motor Company, with no fresh issue component, according to the draft red herring prospectus (DRHP) filed in June.
The South Korean parent is diluting some of the stake through the OFS route.
Since the public issue is completely an OFS, Hyundai Motor India Ltd, which is the second largest carmaker in India 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 its IPO.
In its draft papers, Hyundai Motor India stated that it expects that the listing of the equity shares "will enhance our visibility and brand image and provide liquidity and a public market for the shares".
In February this year, sources had confirmed that the South Korean automaker is looking to raise at least $3 billion through an IPO. It may dilute 15-20 per cent stake to raise funds in the range of $3.3-5.6 billion, sources had stated.
Hyundai Motor India commenced operations in 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 of its Rs 6,145-crore initial share sale.