Uno Minda-led arm inks technical license pact with Hyundai Mobis

26 Sep 2024 , 11:38 AM

Uno Minda Ltd, an auto component manufacturer, announced on Wednesday (25 September) that its subsidiary Minda Onkyo India Private Ltd has signed a technological license agreement (TLA) with Hyundai Mobis Co Ltd of Korea.

This is to tell you that Minda Onkyo India Private Limited, a subsidiary of the firm, has signed a Technical License Agreement (“TLA”) with Hyundai Mobis Co Ltd, Korea on September 25, 2024, for the manufacturing of Licensed products, i.e. speakers. Uno Minda stated in a regulatory filing.

The arrangement allows Minda Onkyo to produce licensed items, primarily speakers, for Hyundai Mobis.

This comes after Hyundai Motor India Ltd gained license from financial markets regulator Sebi to conduct an initial public offering (IPO). South Korean carmaker plans to raise at least $3 billion (about ₹25,000 Crore) through an initial share offering.

If approved, Hyundai Motor India’s IPO will be the largest in India, exceeding LIC’s share sale of ₹21,000 Crore. According to the Draft Red Herring Prospectus (DRHP) submitted in June, Hyundai Motor India’s proposed IPO is solely an Offer-for-Sale (OFS) of 142,194,700 equity shares by promoter Hyundai Motor Company, with no new issue component.

The South Korean parent is diluting some of its ownership via the OFS route. Because the public offering is an OFS, Hyundai Motor India Ltd, India’s second largest carmaker after Maruti Suzuki India, will not benefit from the IPO.

Hyundai Motor India noted in its draft documents that it expects the equity share offering to improve its visibility and brand image, as well as create liquidity and a public market for the shares.

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