MUMBAI, Oct 9 (Reuters): Hyundai Motor plans to use proceeds from a $3.3 billion IPO of its Indian unit to enhance its research efforts and develop new cars, aspiring to transform the South Asian country into a manufacturing hub for emerging markets.
Asked how the IPO proceeds would be used, Unsoo Kim, managing director of Hyundai's Indian unit, said the automaker will "invest aggressively in new products, future technology and research and development capabilities of the India unit".
Hyundai is due to launch the initial public offering - India's biggest ever - next week. It will set a value of up to $19 billion for its business in India, the world's third-biggest car market, where Hyundai competes with market leader Maruti Suzuki and rivals such as Tata Motors.
Hyundai's South Korean parent will offload a stake of up to 17.5per cent in the Indian unit, gaining its first stock market listing outside its home country and becoming the first automaker to go public in India since Maruti Suzuki in 2003.
"India is one of the most exciting auto markets in the world ... (The) IPO will ensure that Hyundai Motor India is even more dedicated to success in India," Kim told a press briefing in Mumbai on Wednesday.
The IPO, the world's second-biggest in 2024, comes as Indian stock markets scale record highs.
Hyundai is India's second-largest carmaker by sales, with about 15 per cent share of the country's passenger vehicle market versus Maruti Suzuki's more than 40per cent share.
The company withdrew a pay rise offer for striking workers, and no new talks with their union are scheduled.
Hyundai to use $3 bln record India IPO proceeds for new cars, R&D
FE Team | Published: October 10, 2024 00:09:03
Hyundai to use $3 bln record India IPO proceeds for new cars, R&D
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