New Delhi: Hyundai Motor India Limited (HMIL) has announced a major initiative to bolster its renewable energy portfolio by setting up two renewable energy plants in Tamil Nadu. According to Hyundai, this development aligns with the company’s ambitious target of achieving the RE100 benchmark by 2025. The RE100 initiative, led by the Climate Group, unites global corporations committed to transitioning to 100 per cent renewable electricity.

To advance this mission, HMIL signed a Power Purchase and Shareholder Agreement with Fourth Partner Energy Limited (FPEL) at its Chennai manufacturing plant. Under the agreement, a 75 MW solar plant and a 43 MW wind power plant will be established to fulfill HMIL’s energy requirements through a Group Captive Mode.

The initiative involves an investment of Rs 38 crore, with the project structured as a Special Purpose Vehicle (SPV) where HMIL will hold a 26 per cent equity stake and FPEL the remaining 74 per cent. The agreement ensures a 25-year supply of renewable energy, propelling HMIL closer to its goal of 100 per cent renewable electricity by 2025.

Currently, HMIL meets 63 per cent of its energy needs through renewable sources and plans to lead the Indian automotive sector in achieving total renewable energy adoption. Commenting on this milestone, Gopalakrishnan Chathapuram Sivaramakrishnan, Whole-time Director & Chief Manufacturing Officer of HMIL, said, “This partnership marks a pivotal milestone in Hyundai Motor India Limited’s journey and reaffirms our commitment towards sustainability. Our collaboration with FPEL will help us achieve the RE100 benchmark by 2025.

He added, “By harnessing the potential of wind and solar power, we are not only reducing our carbon footprint, but also living true to our global vision of ‘Progress for Humanity’. We believe this strategic collaboration will inspire other industries to embrace renewable energy and contribute to a sustainable future.”

Vivek Subramanian, Co-Founder & Executive Director at Fourth Partner Energy, said, “Through this agreement, we will be supplying HMIL with over 25 crore units of clean energy every year, which will help the company mitigate CO2 emissions by 2 lakh tons annually. Together, we are setting a precedent for responsible energy consumption and contributing meaningfully to India’s renewable energy goals.”

In addition to this collaboration, HMIL has been a frontrunner in implementing innovative energy management solutions. The company operates a 10 MW rooftop solar plant at its Chennai facility and has transitioned all its manufacturing units, offices, and dealerships to 100 per cent LED lighting since 2017. Other initiatives include installing waste heat recovery systems, energy-efficient equipment, and strategic procurement of green power from the Indian Energy Exchange (IEX).

Hyundai Motor India Ltd shares slipped almost 6% early in their Mumbai debut, a tepid start to trading for what was the nation’s largest-ever initial public offering.
The shares traded as low as 1,844.65 rupees after they were priced at 1,960 rupees, the top of the marketed range. South Korea’s Hyundai Motor Co sold a 17.5% stake in its local unit in the IPO, seeking to benefit from the investor frenzy for share sales in India — one of the world’s most vibrant venues for listings this year.
Hyundai Motor India, the nation’s second-largest carmaker by sales, was valued at about $19 billion in the IPO. Some saw the shares as pricey, with Bloomberg Intelligence analyst Joanna Chen noting the valuation was about five times its Korean parent’s, though in line with those of Indian peers such as Maruti Suzuki India Ltd.
While the offering was eventually oversubscribed more than two times, book-building was slower than some had anticipated. Hyundai’s deal saw strong demand from institutions, which flooded in on the last day of sale. Retail investors, however, only bought about half the portion that had been reserved for them in the IPO.

Individual traders were turned off by the parent company getting all of the IPO proceeds as well as cooling demand in India’s auto industry, analysts have said. The poor retail interest stands in contrast to the frenzy seen in some recent IPOs, particularly smaller issues.
‘Long-term value’
Hyundai’s initial decline makes it an outlier given that enthusiasm for Indian share sales has generally carried over to their post-listing performance. New listings in the nation have risen by an average of 39% in their first trading day this year, according to data compiled by Bloomberg. Among IPOs of over $500 million, the average gain was 66%.
Some analysts are positive on the stock’s long-term prospects.

“Hyundai Motor India’s IPO offers potential long-term value, but it is not suited for investors seeking quick gains,” Devi Subhakesan, an analyst at Investory Pte, wrote in a note on Smartkarma ahead of the debut. “Valuation risks are expected” amid shifting consumer preferences and rising competition in India’s auto industry.
India’s emergence as the world’s fastest-growing major economy as well as its expanding middle class present an opportunity for automakers. The nation’s car market is on track to reach 20 million units by 2047, Suzuki Motor Corp. Executive Vice President Kenichi Ayukawa said in an interview in July. A total of 4.2 million passenger vehicles were sold in India in the fiscal year ended in March, according to the Society of Indian Automobile Manufacturers.
Nomura Holdings Inc initiated coverage with a buy rating ahead of the listing, citing expectations for “healthy” volume growth and vehicle price increases. It set a price target of 2,472 rupees, implying a potential upside of about 26% over the IPO price.
With Hyundai’s proceeds, Indian IPOs have raised more than $12 billion so far this year, eclipsing volumes for the past two years but still below the record $17.8 billion raised in 2021, according to data compiled by Bloomberg. Other pending debuts include food-delivery company Swiggy Ltd. and the renewable-energy arm of state-run power producer NTPC Ltd.
Around 20 companies from Asia Pacific are listing shares this week in deals that may raise more than $8 billion, the biggest weekly volume since April 2022, according to data compiled by Bloomberg. Shares of Japan’s Tokyo Metro Co are scheduled to start trading on Wednesday after a $2.3 billion offering.