Hyundai Motor IPO
Hyundai Motor India IPO opens: Issue subscribed 10% till noon on Day 1, retail portion booked 17%
Mumbai/IBNS: Hyundai Motor India’s Rs 27,870-crore initial public offering (IPO) saw a modest response on its first day, with 10 percent of the total offer being subscribed within the first two hours.
As of 12:20 pm on Tuesday (Oct. 15), the retail investor portion was subscribed at 17 percent, with bids placed for 84 lakh shares against 4.94 crore shares available.
Non-institutional investors had placed bids for 15 lakh shares, representing 7 percent of the 2.12 crore shares offered to them.
Meanwhile, employees subscribed to 46 percent of their allocated shares, with 3.58 lakh bids out of 7.78 lakh shares available.
Qualified Institutional Buyers (QIBs) had yet to subscribe at this point.
The IPO will remain open for subscription until Thursday (Oct. 17).
Hyundai, the second-largest carmaker in India, raised Rs 8,315.3 crore on October 14 from 225 anchor investors.
Prestigious global institutions such as the Government of Singapore, New World Fund Inc, Monetary Authority of Singapore, Fidelity, Government Pension Fund Global, and American Funds Insurance Series New World Fund invested Rs 2,191.66 crore in the company.
Hyundai allocated 4.2 crore equity shares to anchor investors at Rs 1,960 per share.
Other global investors, including Baillie Gifford, Vanguard, Blackrock, Canada Pension Plan Investment Board, and Goldman Sachs, also took part in the anchor book round.
The IPO is expected to surpass the Life Insurance Corporation of India's IPO to become the largest-ever in India’s history.
Of the 4.24 crore shares allocated to anchor investors, 1.46 crore shares (34.42 percent of the total allocation) were distributed to 21 domestic mutual funds via 83 schemes.
Mutual funds like ICICI Prudential, HDFC, SBI, and Axis participated in the anchor round.
Hyundai's IPO is an entirely offer-for-sale (OFS), with the Korean promoter, Hyundai Motor Company (HMC), selling 14.22 crore equity shares, without any new issue component.
This is the first IPO by an automaker in India in over two decades, since Maruti Suzuki’s listing in 2003, and marks HMC’s partial stake dilution through the OFS route.
Hyundai India believes that the IPO will boost its brand visibility, provide liquidity, and establish a public market for its shares.
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