Hyundai Motor Company plans to float a 17.5% stake in its Indian vehicle manufacturing subsidiary in an initial public offering (IPO) later this month, as the South Korean automaker looks to raise funds for its expansion in the world’s most populous nation and step up its transition to zero-emission vehicles.
According to reports in South Korea, citing a regulatory filing, Hyundai plans to sell a total of 142.19 million shares in its Indian unit – which are expected to begin trading on the Bombay Stock Exchange on 15th October. Hyundai expects to raise around US$3bn from the IPO while retaining an 82.5% stake in the subsidiary.
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Hyundai Motor India was established in 1996 and is now the country’s third-largest automaker after Maruti Suzuki and Tata Motors, with local sales reaching 602,000 units last year – mostly small cars based on its i10 and i20 models and the Creta small SUV. The company exported a further 164,000 vehicles last year, with total output amounting to 766,000 units.
Earlier this year Hyundai said it aims to lead the country’s transition to battery electric vehicles (BEVs) by ramping up local production, bringing in new products and establishing a BEV ecosystem including a nationwide charging network.
Hyundai Motor Group’s executive chairman, Euisun Chung, during his visit to India earlier this year stated: “By around 2030, we expect to see a substantial expansion in the Indian EV market. In anticipation of this evolution, Hyundai is focused on developing locally-tailored EVs aimed at establishing the company as a leading global EV brand. We also plan to proactively build charging stations at strategic locations, including dealerships, to facilitate the adoption of EVs”.
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