India (Commonwealth) _ With $3.3 billion raised, Hyundai Motor India’s oversubscribed IPO completed Thursday, becoming the biggest of its kind in India.
The IPO also achieved other significant milestones: it is the first time a South Korean automaker has listed a unit outside of its home country; it is India’s first automaker IPO since market leader Maruti Suzuki debuted in 2003; and it is expected to become the second-largest in the world this year, behind warehousing giant Lineage Inc.’s $4.44 billion listing on the Nasdaq composite in July.
The South Korean automaker Hyundai Motor Company has a wholly-owned Indian subsidiary called Hyundai Motor India Limited (HMIL). In India, it is the second-biggest automaker.
The Hyundai Motor Company of South Korea established Hyundai Motor India Limited on May 6, 1996. The Hyundai brand was virtually unknown in India until Hyundai Motor Company joined the Indian auto industry in 1996.
There were just five significant automakers in India at the time of Hyundai’s 1996 entry: Maruti, Hindustan, Premier, Tata, and Mahindra. Ford, Opel, and Honda joined the Indian auto industry less than a year ago, while Daewoo only joined three years prior with the Cielo.
About 85% of Hyundai Motor India Limited’s electrical power in 2022 will come from external power plants using environmentally friendly energy. Additionally, a 1.9 MWp fixed solar power system is presently being installed on the roof of the module plant with a size measuring 13,028 m².
Hyundai Motor India submitted a draft prospectus for clearance of an IPO to the Securities and Exchange Board of India on June 15, 2024. In order to collect up to $3.3 billion and establish itself as the top South Korean automaker’s worldwide export base, Hyundai Motor Co.’s Indian affiliate announced on Wednesday that it will begin its IPO, the biggest listing in the nation, next week.
Hyundai Motor India Ltd., a fully owned subsidiary of Hyundai Motor Co., is preparing to launch its initial public offering (IPO) on October 15 following the Securities and Exchange Board of India’s approval.
In order to generate up to 278.6 billion Indian rupees ($3.3 billion) and obtain its first listing outside of South Korea, the parent company intends to sell up to 17.5% of the Indian entity, or 142.2 million shares. The prices of the stocks that will go on sale in Mumbai on October 22 range from 1,865 to 1,960 rupees each.
The listing, which will rank as the second-biggest in the world in 2024, values Hyundai Motor India at the upper end of the pricing range at about $19 billion, or 40% of the parent company’s $45 billion valuation on South Korea’s benchmark Kospi.
It is anticipated that the IPO would surpass the listing of the state-owned Life Insurance Corporation of India in May 2022 to become the biggest listing in Indian history.
According to a Seoul-based industry source, “Indian investors have high expectations for Hyundai’s Indian unit’s growth potential.”
Since its debut in 1996, the firm has sold 8.2 million automobiles in India, the third-largest automobile market in the world. After Maruti Suzuki India Ltd., the maker of the Exter compact sport utility vehicle, is the second-largest passenger automobile manufacturer in the world’s most populous nation.
WORLD EXPORTS CENTER
The money raised will be used by Hyundai Motor Company to expand its worldwide export center in India.
When Chung Euisun, the executive chairman of Hyundai Motor Co., visited India in April, he stated, “We intend to cultivate the Indian unit as a global exports hub to expand our business in Asia, the Middle East, and Africa.” “We will expand EV infrastructure and develop electric vehicles specifically for India.”
Hyundai Motor India, which currently produces 820,000 vehicles annually at two plants in Chennai, Tamil Nadu, plans to increase production capacity to one million after completing its third facility in Pune, Maharashtra, in the second half of 2025.
By 2030, the corporation intends to build 485 charging stations and generate EVs in the nation.
An official from Hyundai Motor India stated, “With the listing in India, the most dynamic market in the world, we hope to make another leap.” “We will spend the majority of the profits here in an effort to become a company for the Indian people.”
