October 10, 2024
New Delhi, India
Hyundai Motor India IPO
Hyundai Motor India has announced a ₹32,000 crore investment plan over the next 10 years to enhance its presence in the Indian market. This will include the development of new cars and expanding research and manufacturing facilities, aiming to transform India into a manufacturing hub for emerging markets (EMs).
IPO to Fuel Growth
The company is gearing up for its upcoming initial public offering (IPO) on October 15, 2024. The IPO will offer 14.22 crore shares through an offer for sale (OFS), with the South Korean parent company aiming to raise ₹27,000 crore. This will mark Hyundai’s first listing outside South Korea and India’s largest public issue, surpassing the Life Insurance Corporation (LIC) IPO.
Capacity Expansion and EV Focus
Managing Director Unsoo Kim revealed that ₹6,000 crore is being invested in a new plant in Pune, which will increase the company’s total production capacity by 30%, reaching 1.1 million units by 2028. Hyundai also plans to expand its electric vehicle (EV) segment, aiming for a stronger foothold in the growing EV market.
Also Read: Garuda Construction IPO: Grey Market Premium Drops 75%, Last Day to Apply
Rural Growth and Market Share
Hyundai is also focusing on expanding its presence in rural areas, which now contribute 15% to the company’s sales. Interestingly, the company reported that SUVs are just as popular in rural markets as in urban areas, debunking the myth that rural consumers primarily prefer smaller cars.
Largest IPO in India’s Auto Sector
The IPO is expected to be the largest in India’s auto sector since Maruti Suzuki went public in 2003. Hyundai Motor India is set to raise $3.3 billion, with shares priced between ₹1,865 and ₹1,960 per share. Trading is expected to start on October 22, 2024.
Hyundai’s strategic investment plan and the upcoming IPO reflect the company’s commitment to strengthening its position in India, the world’s third-largest car market.
Disclaimer:
CurrencyVeda provides this news article for informational purposes only. We do not offer investment advice or recommendations. Before making any investment decisions, please conduct thorough research, consult with financial experts, and carefully consider your financial situation, risk tolerance, and investment goals. Investing in the stock market carries risks, and it’s essential to make informed choices based on your individual circumstances. CurrencyVeda is not liable for any actions taken based on the information provided in this article.
