Hyundai Motor India to invest Rs 32,000 crore in India
NEW DELHI New Delhi: IPO-ready Hyundai Motor India Ltd (HMIL) plans to invest about Rs 32,000 crore in India by 2032 as the company estimates strong and steady growth in the EV market by 2030. The company is looking to raise up to $3.26 billion through the IPO and the shares are expected to start trading from October 22. According to the automaker’s IPO papers filed with Sebi, “We have signed four MoUs with the Government of Tamil Nadu for our Chennai manufacturing plant and a letter of offer with the Government of Maharashtra for our Talegaon manufacturing plant, which is yet to commence operations, involving investment commitments totalling approximately Rs 320,000 million (Rs 32,000 crore).” According to the draft papers, the company said its future capital expenditure will be primarily for acquisition of plant, property and equipment and intangible assets in relation to new passenger vehicle model launches.
According to the draft IPO papers, “In the three months ended June 30, 2024 and 2023 and in fiscal years 2024, 2023 and 2022, our payments for the acquisition of property, plant and equipment and intangible assets were Rs 5,590.72 million, Rs 5,355.84 million, Rs 32,462.08 million, Rs 22,609.82 million and Rs 12,649.79 million, respectively.” Unsoo Kim, MD of Hyundai Motor India, predicts that the growth of EVs is possible due to the increasing focus of various companies on the local market and strong government support. Kim said, “We believe that the Indian EV market is expected to grow strongly and steadily until 2030, mainly due to the strong leadership of the government and the focus of many OEMs on this segment. HMIL has access to global battery technologies, so we are developing an EV ecosystem.” The automaker has set a production target of 775,000 units for this year, up from 765,000 units last year.
The price band for Hyundai Motor India Ltd’s IPO has been set between Rs 1,865 and Rs 1,960, Hyundai Motor said in a regulatory filing to the South Korean Financial Supervisory Service. The announcement comes after the Seoul-based parent company decided to sell 17.5 per cent of its 812.54 million shares in the Indian subsidiary. This will be the largest IPO in the history of the Indian stock market, surpassing the previous record set by Life Insurance Corporation of India in 2022, which then raised $2.5 billion.
