Hyundai Motor India Goes Public After Two Decades, Aiming to Revolutionize the Indian Auto Market
HMI IPO Proceeds to Fund Electric Vehicle Expansion, Strengthening India as a Manufacturing Hub
BILKULONLINE
Ahmedabad, Oct 10: Hyundai Motor India Limited (HMI) is set to make history with the launch of India’s largest initial public offering (IPO), aiming to raise ₹27,870 crore. This monumental IPO will be conducted entirely through an Offer for Sale (OFS), consisting of 14.2 crore equity shares by its parent company, Hyundai Motor Company, based in South Korea. Notably, this IPO marks the first time in two decades that a carmaker has gone public in India, highlighting Hyundai’s significance in the Indian market.
Key Details of the IPO:
- Price Band: ₹1,865 to ₹1,960 per equity share of face value ₹10.
- Anchor Investor Bidding Date: Monday, October 14, 2024.
- IPO Bid/Offer Dates: Bids can be placed between Tuesday, October 15, 2024, and Thursday, October 17, 2024.
- Minimum Bid Size: Investors can bid for a minimum of 7 equity shares and in multiples of 7 thereafter
At the upper end of the price band, Hyundai Motor India is expected to raise ₹27,856 crore, surpassing the Life Insurance Corporation of India’s IPO from 2022, which raised $2.5 billion, making this the largest IPO in India’s history.
Hyundai Motor India is the country’s second-largest car manufacturer, boasting a 15% market share, closely following Maruti Suzuki. With over one in four Hyundai vehicles sold in India, the company has established itself as a key player in the Indian automotive market. Hyundai has been the top passenger vehicle exporter from India since 2005 and continues to bring innovation through its global R&D network.
Hyundai’s vehicles, known for their reliability and advanced features, have captured customer interest across segments like sedans, SUVs, and electric vehicles (EVs). With plans to introduce three new electric vehicle models in India, Hyundai aims to further transform the country’s automotive landscape and position India as a hub for manufacturing vehicles tailored for emerging markets. Additionally, the company is set to roll out new EV models, establish charging stations, and launch hybrid vehicles by 2027, indicating a strategic focus on sustainability and eco-friendly mobility.
Impact of the IPO on Hyundai’s Future
With this IPO, Hyundai Motor India plans to reinvest in its research and development (R&D) efforts and continue its innovations in manufacturing, enhancing its product portfolio in India and globally. Tarun Garg, COO and Whole-Time Director of Hyundai Motor India, shared his thoughts on the IPO’s significance:
“This IPO is a milestone for Hyundai Motor India, and it reflects our commitment to the Indian market. We plan to focus on sustainable business practices, maintain global governance standards, and leverage this opportunity to accelerate our growth in one of the world’s most important automotive markets.”
After the listing, Hyundai India’s market capitalization could potentially reach nearly half of its parent company, Hyundai Motors, which is valued at $47 billion. This move is anticipated to bolster Hyundai’s presence not only in India but also in international markets by tapping into the capital generated through the IPO.
Leadership in Focus
- HMI’s top leadership team, consisting of Tarun Garg (COO and Whole-Time Director), Wongdo Hur (CFO, Whole-Time Director, and Chief Business Head Finance), Yerin Kim (Manager, Hyundai Motor India Limited), Kevin Yun (Advisor, Investor Relations), Puneet Anand (AVP, Corporate Affairs), Sabarish B (AVP, Business Finance) with Sunil Amin (Managing Director of Kotak Mahindra Capital Company), has been actively engaging with stakeholders and media to discuss the significance of the IPO.
Their recent press event in Ahmedabad shed light on Hyundai’s strategic goals in the Indian market, with a clear focus on sustainable development, electric mobility, and strengthening its manufacturing capabilities.
Hyundai Motor India’s IPO launch is a transformative event, not only for the company but also for the Indian stock market. As Hyundai continues to innovate and grow, this offering marks the beginning of a new chapter, cementing its place as a leading automaker in India and globally. The company’s focus on sustainability, electric vehicles, and advanced manufacturing sets a positive trajectory for its future endeavors.
Disclaimer: This IPO news report is for informational purposes only and does not constitute financial or investment advice.
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