Hyundai Motor plans to utilize the proceeds from its $3.3 billion initial public offering (IPO) of its Indian unit to boost research efforts and develop new vehicles, aiming to position India as a manufacturing hub for emerging markets.
The IPO, set to launch next week, will value Hyundai India at up to $19 billion, making it the largest IPO in the country’s history.
“The IPO proceeds will be used to ‘invest aggressively in new products, future technology, and research and development capabilities of the India unit,'” said Unsoo Kim, managing director of Hyundai India. The South Korean automaker intends to offload up to 17.5% of its Indian unit, marking its first stock market listing outside of South Korea.
Tarun Garg, Chief Operating Officer of Hyundai India, emphasized the importance of this move, stating, “We intend to become a global manufacturing hub for Hyundai for the emerging markets. In the next 3-4 years, a 30% increase in production will improve our domestic and export volumes.”
