Hyundai Workers Demand Share Allocation Amid India's Mega IPO

Hyundai Motor has ruled out a special share allocation for Indian workers in its upcoming $3 billion stock market listing, despite employee protests. The South Korean carmaker, however, has agreed to address worker concerns through discussions. India's crucial market status for Hyundai is underscored, with significant investments planned.

South Korean carmaker Hyundai Motor has announced that it will not allocate special shares to Indian workers in its forthcoming $3 billion stock market listing, despite recent employee protests. According to sources, Hyundai has agreed to discuss worker concerns without committing to a separate employee share quota.

In a recent demonstration, hundreds of workers at Hyundai's main Indian plant in Sriperumbudur near Chennai demanded a share allocation. Although Hyundai has opted not to create a specific employee quota, the company has agreed to begin talks to address the employees' concerns, as per a letter and sources.

A Hyundai India spokesperson did not comment on the issue. India remains a significant market for Hyundai, which has invested $5 billion and plans to invest another $4 billion over the next decade. The Indian IPO will see Hyundai's South Korean parent sell a 17.5% stake in its Indian operations, but without any new share issuance. Workers are encouraged to bid alongside retail investors, who will make up about 35% of the total shares.

(With inputs from agencies.)