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 "Tarun Garg, Chief Operating Officer, Hyundai Motor India (HMIL)")
Tarun Garg, Chief Operating Officer, Hyundai Motor India (HMIL)
The upcoming Rs 27,870 crore initial public offering of South Korean automaker Hyundai’s Indian arm, the first such example of the company listing its subsidiary in a foreign market, aims to promote Indianization of operations, said a senior company official on Friday.
Hyundai Motor India Ltd’s initial public offering (IPO), the largest in the country’s history, will open for public subscription on October 15 and close on October 17. Lead investors will submit an offer on October 14.
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“We have been present in India for more than 26 years. We have a very high market share. We are number two in India in the passenger vehicle business. We have so much love and affection from the people of India we believe that this is the right time to take a step forward and further Indianise our operations,” Tarun Garg, Chief Operating Officer of Hyundai Motor India Ltd (HMIL), told PTI.
He added, “The aim is to truly become the most trusted brand in India. »
Garg was responding to a question on why the company chose India for a public listing and not other countries.
“If you look at India as a country, it is doing really, really well. The GDP is very good, much higher than the global GDP growth rates,” he said, adding that in the last three or Last four years, India has become a very prosperous country. good destination for all major players and the pace of growth has further accelerated.
Furthermore, with the company’s growth expected to accelerate further in India, Garg said it is an opportune time to go public.
“The Pune plant (acquired from General Motors) is also in the process of (opening). We believe that this is the right time to invite and give opportunity to all local investors, as well as investors global, to be part of this project a growth story… it’s something very important, and it will really make us more inclusive,” Garg noted.
Additionally, he said: “This IPO gives us the opportunity to really pursue some global standards in terms of excellence, in terms of operations, in terms of governance. All of these things really work in favor of an IPO. »
On Hyundai’s choice to choose the Indian arm for public listing and not that of other countries, Garg said: “We are the second largest player in India (in passenger vehicles), apart from (South) Korea )…and we have a double-digit market. These are two very significant points and the fact that Hyundai in India has done very well, it gives confidence.”
Furthermore, he said, “The Hyundai brand has really been very well accepted in India. We have managed to appeal to the Indian people in general. This is probably the right country to really embark on introducing in sotck exchange.”
HMIL has set a price band of Rs 1,865 to Rs 1,960 per share for the offer, valuing the automaker at Rs 1.6 lakh crore (around $19 billion). At the upper end of the price band, the IPO size has been pegged at Rs 27,870 crore.
The company’s IPO will surpass Life Insurance Corporation of India’s (LIC) Rs 21,000 crore offering in May 2022.
First publication: October 11, 2024 | 4:17 p.m. STI