Hyundai Motor India initial public offer (IPO) received 42 percent subscription on the second day of bidding on October 16. The Indian arm of South Korean automaker Hyundai received bids for 4.17 crore shares against 9.97 crore shares on offer, as per NSE data until 3 pm.
The portion for retail individual investors (RIIs) of the Rs 27,870 crore initial share sale was subscribed 38 percent, while the non-institutional investors category fetched 26 percent subscriptions. The quota for qualified institutional buyers (QIBs) garnered a 58 percent subscription.
The employee portion of the issue has been fully booked with 1.31 times subscription.
The company on Monday raised Rs 8,315 crore from anchor investors. This is the largest IPO in the country, surpassing LIC's initial share sale of Rs 21,000 crore.
The IPO, with a price band of Rs 1,865-1,960 per share, will remain open for public subscription from October 15 to October 17. The IPO is entirely an offer for sale (OFS) of 14,21,94,700 equity shares by promoter Hyundai Motor Company (HMC), with no fresh issue component.
Hyundai India IPO GMP
According to multiple platforms that track the grey market premium activities, the shares of Hyundai Motor India are commanding a GMP in the price range of Rs 35 in the unofficial market, indicated a premium of nearly 2 percent.
Hyundai India shares will be listed on both NSE and BSE on October 22 while shares will be allotted to successful bidders on October 18.
This marks the first initial public offering (IPO) by an automaker in over 20 years, following the listing of Japan’s Maruti Suzuki in 2003. Hyundai Motor India's South Korean parent company is reducing its stake through the Offer for Sale (OFS) route.
As the entire issue is an OFS, Hyundai Motor India Ltd (HMIL), the country’s second-largest carmaker after Maruti Suzuki, will not receive any funds from the IPO.
HMIL said that it expects the listing of its shares to boost its visibility, enhance its brand image, and offer liquidity with a public market for its shares.
At the top end of the price band, the IPO is valued at Rs 27,870 crore (around USD 3.3 billion), with the company’s market capitalisation estimated at approximately Rs 1.6 lakh crore (about USD 19 billion) post-listing.
HMIL began operations in India in 1996 and currently offers 13 models across different segments.
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