South Korean automaker Hyundai Motor Group is now taking the next big step in India with the Initial Public Offering of Hyundai Motor India Ltd, according to Hyundai Motor Group Executive Chair Euisun Chung.
“Today’s IPO shows that HMIL is a key part of India. It demonstrates our commitment to this great nation and ensures that our shareholders and HMIL will continue to grow together,” Chung said while speaking at the listing ceremony.
Hyundai India’s IPO, which was a pure offer of sale, is the largest in India till date. The South Korean parent company raised Rs 27,870 crore through the issue by diluting a 17.5% stake in its wholly-owned India unit.
India, the third largest passenger vehicle market in the world, is the third largest market for the South Korean company as well and accounts for around 14% of its global sales.
Hyundai entered India in 1996 and introduced its first car, Santro, in 1998. It has invested around Rs 29,741 crore in India as of December end in tangible fixed assets and capital work in progress since inception. The company has cumulatively sold nearly 12 million passenger vehicles in India and through exports.
In 2023-24, Hyundai India sold 6,14,721 vehicles in the domestic market, representing a growth of 8% on a year-on-year basis. It has around 15% market share in the Indian passenger vehicle market. Hyundai India's exports also rose 6.7% to 1,63,155 vehicles during the year.
“From the beginning, we knew that India was the future. That is why we continuously increased investments, expanded our R&D capabilities and created more than 250,000 jobs. We also attached importance to establishing valuable partnerships with Indian stakeholders,” Chung said.