look news india
Automaker Hyundai Motor India has received approval from the Securities and Exchange Board of India (SEBI) for its IPO.
This IPO will be India's largest IPO in which the company will raise three billion dollars i.e. around Rs. There is a plan to raise Rs 25000 crore. The total valuation of the company from the IPO can be around $ 18 billion or Rs 1.5 lakh crore. It can be noted here that the record for the largest IPO in the country is currently held by LIC, which was launched in May 2022 and raised Rs. 21008 crore was collected. Hyundai's IPO will be open for sale (OFS) in which 142 million shares or 17.5 percent stake will be sold by South Korean parent company Hyundai Motor Company.
A step by the company to strengthen its position in the Indian market
Hyundai's IPO is an important step towards strengthening its position in the Indian market and boosting India's ambition to become an export hub. The company aims to increase production capacity to one million units per year in the next few years. The new Telegaon plant will increase its production by 1.70 lakh units and is planned to start production in 2025.
Hyundai to invest 5 billion dollars in the country
India is the third-largest revenue generator after the US and South Korea. The company has already invested $5 billion in the country and has committed to invest another $4 billion over the next decade. After entering India in 1996, Hyundai initially launched affordable hatchbacks like the Santro, which became a huge success. In 2015, the company launched its first locally manufactured SUV, the Creta, in the Indian market.
Sales of SUV models declined due to heavy competition
Hyundai's SUV sales have declined in recent years. Over the past year, its share of 2.5 lakh unit sales fell to 19 per cent from 24 per cent last year, although 66 per cent of Hyundai's domestic volume comes from SUVs, which is higher than the industry average.