Hyundai IPO subscribed 2.37x on last day of sale; QIBs lead with 7 times subscription

Hyundai Motor India Ltd (HMIL) is the largest IPO in the country, surpassing LIC's initial share sale of Rs 21,000 crore.

Hyundai Motor Company's Indian unit secured full subscription for its record initial public offering on the final day, rebounding from a sluggish start as investors overcame concerns about weakening auto demand and weakness in the broader market.

Hyundai Motor India's Rs 27,870-crore IPO drew bids for more than twice the shares on offer on the third day, with investors seeking 23.63 crore equity shares against 9.98 crore on offer, according to NSE data on Thursday.

Subscription details showed robust institutional demand, with the qualified institutional buyer (QIB) segment bidding for 6.97 times the shares on offer. Retail individual investors (RIIs) fetched 50 percent subscription and non-institutional investors subscribed 60 percent of shares on offer, respectively. On Monday, Hyundai Motor India raised Rs 8,315 crore from anchor investors.

The maiden share sale by the Indian arm of South Korean automaker Hyundai is the largest IPO in the country, surpassing Life Insurance Corp. of India's initial share sale of Rs 21,000 crore. The IPO, with a price band of Rs 1,865-1,960 per share, will conclude today.

Hyundai IPO last day today: Will India's largest public issue hit Rs 1 lakh crore bids?

Hyundai India share price listing expectation

Hyundai IPO GMP has dropped below 1 percent on the last day of bidding on October 17. According to multiple platforms that track the grey market premium activities, the shares of Hyundai India are commanding a GMP in the price range of Rs 14 over the IPO price, indicating a flat 0.71 percent premium listing on October 22 (Tuesday).

Hyundai Motor India is set to launch an IPO, entirely structured as an offer for sale (OFS) of 14.21 crore equity shares by its parent company, Hyundai Motor Company (HMC). Notably, there is no fresh issue of shares in this IPO. This marks the first IPO by a carmaker in India in over two decades, after Japanese automaker Maruti Suzuki made its market debut in 2003. HMC, the South Korean parent, is reducing its stake through the OFS.

Since the IPO is fully an OFS, HMIL, the country’s second-largest car manufacturer after Maruti Suzuki, will not receive any funds from the public issue.

In a statement, HMIL mentioned that the listing of its equity shares is expected to boost the company’s visibility and brand value, while also providing liquidity and creating a public market for its shares.

The IPO size is estimated at Rs 27,870 crore at the upper end of the price band, putting HMIL’s market valuation at approximately Rs 1.6 lakh crore post-issue. Established in 1996, HMIL currently offers 13 models across various segments in the Indian market.

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