New Delhi . The Indian subsidiary of South Korean automotive company Hyundai Motor is all set to enter the stock market this week after a record IPO. Officials gave this information on Monday.
Hyundai Motor India shares are set to begin trading on the Indian stock exchange on Tuesday, following a $3.3 billion IPO subscription process last week.
This is Hyundai Motor's first listing outside South Korea and the largest IPO in the history of the Indian stock market.
This IPO has broken the previous record made by Life Insurance Corporation of India (LIC) in the year 2022. LIC had raised $2.5 billion through Hyundai Motor's first IPO.
The price band of the IPO has been fixed at Rs 1,8651,960 per share. The IPO is purely an offer for sale (OFS) and the entire proceeds will go to the promoter.
India serves as a major global production hub for the Korean automotive giant. Hyundai produced 765,000 vehicles in India last year, Yonhap news agency reported.
Hyundai Motor India is the second largest car manufacturer in India after Japan's Maruti Suzuki. Market experts believe that the company can give competition to local companies by getting listed in the Indian stock market.
The company has shown momentum in recent years regarding investment in India. Last year, Hyundai acquired General Motors' manufacturing plant in the western Indian city of Pune.
The company is currently upgrading the facilities with a smart manufacturing system. With this plant the company aims to achieve a production capacity of more than 2 lakh units annually.
When the Pune plant becomes operational in the second half of next year, Hyundai Motor India will have a combined annual production capacity of 10 lakh units, leveraging both the Chennai and Pune plants.
Additionally, Hyundai Motor plans to increase the number of electric vehicle (EV) charging stations in India to 485 by 2030.
Hyundai Motor, along with its sister company Kia Corp, has entered into a strategic partnership with Indian battery giant Exide Energy this year.
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Image Credit: KhasKhabar.