On June 16, 2024, Hyundai Motor Company officially announced its filing for an initial public offering (IPO) in India, with plans to raise nearly $3 billion.
The South Korean automaker submitted the “Draft Red Herring Prospectus (DRHP)” to the Indian securities market, marking a crucial step in the IPO process. India’s Securities and Exchange Board is expected to review and approve the IPO within the next three to six months.
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Hyundai Motor Company has wholly owned its subsidiary, Hyundai Motor India Limited, since its inception in 1996. The IPO will involve the sale of portions of existing shares in the Indian subsidiary, with no new shares to be issued. The company aims to sell 142 million shares out of its 812 million shares in Hyundai Motor India Limited, potentially valuing the subsidiary at around $30 billion.
The IPO is expected to provide Hyundai with funds to expand its operations in India, the world’s third-largest car market. Hyundai Motor Group Chairman Chung Eui-sun emphasized the company’s commitment to growth in the Indian market, where Hyundai is the second-best-selling automaker after Maruti Suzuki.
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Hyundai currently has an annual production capacity of 1 million units in India, with two plants in Chennai producing 850,000 cars annually. Last year, Hyundai acquired a factory in Talegaon from General Motors, capable of producing 130,000 vehicles per year.
Looking ahead, Hyundai plans to invest $4 billion in India over the next decade to introduce new electric vehicles, establish charging stations, and develop battery packs.
