Hyundai Motor India's Rs 27,870-crore initial public offering (IPO) saw a steady response on first day of subscription with 18 percent of the overall offer getting subscribed.
On October 15, the retail portion was booked 26 percent with retail investors placing bids for 1.3 crore shares as against 4.94 crore shares on offer. Meanwhile, the non-institutional investors had bid for 27.66 lakh shares as compared to 2.12 crore shares on offer, representing 13 percent bids so far.
Employees had placed 80 percent bids with 6.19 lakh shares subscribed as against 7.78 lakh shares on offer, while the portion set aside for qualified institutional buyers (QIBs) was subscribed 5 percent. The IPO closes on October 17.
The country's second-largest car maker, has mobilised Rs 8,315.3 crore from 225 anchor investors on October 14.
Marquee global institutional names like 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 automobile company.
The company had finalised the allocation of 4.2 crore equity shares to anchor investors at a price of Rs 1,960 per share.
Global investors such as Baillie Gifford, Vanguard, City of New York Group Trust, Moorea Fund, Blackrock, Aegon Investment Management, Schroder, Canada Pension Plan Investment Board, JP Morgan, Eastspring Investments, Goldman Sachs, Copthall Mauritius, Societe Generale, Morgan Stanley, Citigroup Global, Abu Dhabi Investment Authority, and HSBC Global also became shareholders in passenger vehicles maker via anchor book.
The Hyundai Motor India IPO is set to eclipse the previous record held by Life Insurance Corporation of India to become the country's largest-ever IPO.
Out of the total allocation of 4.24 crore equity shares to the anchor investors, 1.46 crore equity shares, amounting to 34.42 percent of the total, were allocated to 21 domestic mutual funds through 83 schemes.
Among the mutual funds that participated in the anchor round are -- ICICI Prudential Mutual Fund (MF), HDFC MF, SBI MF, Nippon India MF, Kotak MF, Axis MF, Aditya Birla Sun Life MF, UTI MF and Bandhan MF.
The IPO is entirely an offer-for-sale (OFS) of 14,21,94,700 equity shares by Korean promoter Hyundai Motor Company (HMC), with no fresh issue component.
This is the first initial share sale of an automaker in over two decades, following Japanese carmaker Maruti Suzuki's listing in 2003. The South Korean parent is diluting some of the stake through the OFS route.
Hyundai India stated that it expects that the listing of the equity shares "will enhance our visibility and brand image and provide liquidity and a public market for the shares".
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