HD Construction Equipment said on the 31st that its Indian subsidiary decided on a paid-in capital increase worth about 87.7 billion won.
According to the Financial Supervisory Service's electronic disclosure system that day, HD Construction Equipment's Indian subsidiary will issue 11,760,119 new shares. The issue price is 7,459 won per share. The total number of shares issued before the capital increase is 31,184,636 common shares.
The paid-in capital increase will be carried out through a third-party allotment, with HD Hyundai XiteSolution participating 100%. HD Hyundai XiteSolution is HD Hyundai's intermediate holding company for the construction equipment institutional sector.
HD Construction Equipment said the paid-in capital increase is to establish local production facilities and a research and development (R&D) center in India.
HD Hyundai XiteSolution plans to establish an industrial vehicle production facility in India and build a production system with an annual capacity of up to 5,000 industrial vehicles by 2030. A total of 47.8 billion won will be invested from this year through 2030 to build the industrial vehicle production base using the raised funds.
HD Construction Equipment said it plans to expand exports to emerging countries nearby as well as the Indian domestic market through this.
HD Construction Equipment also plans to expand its research and development capabilities by securing local talent in India. For the establishment of the India research and development (R&D) center, 39.8 billion won is expected to be invested from next year through 2030.
HD Construction Equipment expects India's industrial vehicle market to grow at an average annual rate of 5% to 6% under the local government's policies to expand transportation and logistics infrastructure.
An HD Construction Equipment official said, "HD Hyundai XiteSolution plans to strengthen its push into the global market with India as its base."