New Delhi: IPO-bound Hyundai Motor India Ltd (HMIL) has earmarked investments worth around Rs 32,000 crore for India till 2032, as the company predicts a strong and steady EV market growth till 2030. The company seeks to raise up to $3.26 billion through an IPO and shares are expected to begin trading on October 22.

According to the automaker’s IPO papers filed with SEBI, “We entered into four memoranda of understanding with the Government of Tamil Nadu for our Chennai Manufacturing Plant and offer letters with the Government of Maharashtra for our Talegaon Manufacturing Plant, which is yet to commence operations, all of which involved investment commitments, aggregating to approximately Rs 320,000 million (Rs 32,000 crore)”.

According to the draft papers, the company said its future capital expenditures to be primarily for the acquisition of plant, property and equipment and intangible assets in relation to new passenger vehicle model launches.

“In the three months ended June 30, 2024 and 2023 and in fiscals 2024, 2023 and 2022, our payment for acquisition of property, plant and equipment and intangible assets were Rs 5,590.72 million, Rs 5,355.84 million, Rs 32,462.08 million, Rs 22,609.82 million and Rs 12,649.79 million, respectively,” according to the draft IPO papers.

Hyundai Motor India MD Unsoo Kim has predicted that the EV growth will likely come on the back of increased focus from various companies on the local market and robust government support.

“We believe that the Indian EV market is expected to grow strongly and steadily by 2030, mostly led by the government’s strong leadership and many OEMs’ focus on this segment. HMIL has access to global battery technologies, so we are developing an EV ecosystem,” Kim added.

The automaker has set a production target of 775,000 units for this year, up from 765,000 units in the previous year.

Hyundai Motor said in a regulatory filing to the South Korean Financial Supervisory Service that the price band for the IPO for Hyundai Motor India Ltd has been set between Rs 1,865-Rs 1,960. The announcement follows the Seoul-based parent company’s decision to sell 17.5 per cent of its 812.54 million shares in the Indian subsidiary.

This would mark the largest IPO in the history of the Indian stock market, surpassing the previous record set by the Life Insurance Corporation of India in 2022, which then raised $2.5 billion.