Hyundai Motor India Limited (HMIL), the Indian subsidiary of the South Korean automotive giant, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its upcoming initial public offering (IPO). This significant move will make Hyundai the first automaker in India to go public since Maruti Suzuki did so in 2003. Let’s delve into the details of this landmark development and its potential impact on the Indian automotive industry.
Details of the IPO
Hyundai plans to offer over 14 crore shares for sale, each with a face value of Rs 10. This offering equates to 17.5% of the company’s total value. Reports indicate that Hyundai aims to raise at least $3 billion (approximately Rs 25,000 crore) through this IPO. Notably, the company will not issue any fresh shares as part of this offering.
The DRHP states, “The objects of the offer are to carry out the Offer for Sale of up to 142,194,700 Equity Shares of the face value of Rs 10 each by the Promoter Selling Shareholder and to achieve the benefits of listing the Equity Shares on the Stock Exchanges.” This strategic move aims to enhance transparency and unlock value for shareholders through public listing.
Strategic Investments and Expansions
Hyundai’s commitment to the Indian market is evident through its strategic investments and expansion plans. In 2023, the company announced an ambitious investment of Rs 20,000 crore in Tamil Nadu over the next decade. This investment will focus on developing future vehicle platforms, establishing a battery pack assembly unit, and increasing production capacity.
The battery pack assembly unit will have the capacity to produce 1.78 lakh batteries annually. This move aligns with Hyundai’s broader strategy to boost its electric vehicle (EV) portfolio and cater to the growing demand for sustainable mobility solutions.
Acquisition of GM’s Talegaon Plant
In January 2024, Hyundai completed the acquisition of General Motors (GM) India’s Talegaon plant. This acquisition strengthens Hyundai’s production capabilities, enabling the company to meet the increasing market demand. The Talegaon plant will play a crucial role in Hyundai’s production strategy, ensuring that the company can scale up its operations efficiently.
Focus on Electric Vehicles
Hyundai has outlined an aggressive plan to expand its EV lineup in India. By 2028, the company plans to launch six new battery-powered vehicles. The Ioniq 5 crossover, already on sale, is part of this plan. At least two of the upcoming EVs will be based on the Hyundai Group’s dedicated E-GMP architecture, while the other three could utilize modified versions of Hyundai’s internal combustion engine (ICE) vehicle platforms.
Hyundai is also reportedly testing an all-electric SUV based on the popular Creta compact SUV. This model is expected to launch in the coming years, further solidifying Hyundai’s position in the Indian EV market.
Sales Performance and Market Presence
Hyundai India continues to perform robustly in terms of sales. In May 2024, the company registered total sales of 63,551 units, comprising 49,151 domestic sales and 14,400 exports. This figure represents a 6.6% increase compared to May 2023. Additionally, Hyundai recorded a 31% increase in exports in May 2024 compared to the same period last year.
These impressive sales figures underscore Hyundai’s strong market presence and its ability to adapt to the evolving automotive landscape. The company’s commitment to innovation and customer satisfaction remains a driving force behind its success.
Conclusion: A New Chapter for Hyundai in India
Hyundai Motor: The upcoming IPO marks a significant milestone for Hyundai Motor India. By going public, Hyundai aims to enhance its market visibility and unlock value for its stakeholders. The company’s strategic investments, focus on EVs, and robust sales performance position it well for future growth. As Hyundai continues to innovate and expand, its journey in the Indian market promises to be exciting and transformative. This IPO not only highlights Hyundai’s confidence in the Indian market but also sets the stage for new opportunities and advancements in the automotive industry. Read more 2024 Kawasaki Ninja 300 Launched in India
Source https://www.carandbike.com/
