Hyundai Motor India raises Rs 8,315 crore from 225 anchor investors, IPO to open on October 15

Hyundai Motor India

Hyundai Motor India, the country's second-largest car maker, has mobilsed Rs 8,315.3 crore from 225 anchor investors on October 14, a day before the public issue opening. It is a part of South Korea-based Hyundai Motor Company, which also owns Kia Motors and Kia Corporation.

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 has 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.

Also read: Hyundai Motor India IPO to open October 15: 10 key things to know before subscribing to the issue

Asset management and insurance companies like SBI Mutual Fund, Nippon Life India, Kotak Mutual Fund, Axis Mutual Fund, Aditya Birla Sun Life Trustee, UTI Mutual Fund, Mirae Asset, Franklin India, Motilal Oswal Mutual Fund, Ashoka Whiteoak, Invesco India, Bank of India MF, Bandhan Mutual Fund, Tata Mutual Fund, SBI Life Insurance Company, HDFC Life Insurance Company, SBI General Insurance, Canara HSBC Life Insurance, ICICI Lombard General Insurance, Bajaj Allianz General Insurance, and Max Life Insurance Company, too, invested large amount of money in Hyundai Motor India IPO.

ICICI Prudential Mutual Fund and HDFC Asset Management Company through their several schemes picked Rs 366.5 crore worth shares each in Hyundai.

"Out of the total allocation of 4.2 crore shares, 1.46 crore shares were allocated to 21 domestic mutual funds through a total of 83 schemes," Hyundai said in its filing to exchanges.

On October 9, Moneycontrol was the first to report that Hyundai has held discussions with more than 100 top global and domestic public market investors for participation in its anchor book, namely GIC, Capital Group arms, Fidelity Group arms, Government Pension Fund Global ( Norges Bank Investment Management) , BlackRock, T Rowe Price, Baillie Gifford and SBI MF, HDFC MF, ICICI Prudential MF, Nippon India MF, Kotak MF, Axis MF, amongst other players.

Also read: Hyundai India IPO's grey market premium settles down to 3% a day before issue opening: Should you subscribe?

Hyundai Motor India will open its Rs 27,870-crore ($3.3 billion) initial public offering for subscription on October 15 with a price band at Rs 1,865-1,960 per share. The last day for bidding will be October 17.

The IPO solely consists of offer-for-sale by parent Hyundai Motor Company that holds 100 percent stake in its Indian subsidiary. The entire public issue money (excluding offer expenses) will be received by the promoter, while the company will not get funds from the book-built issue.

The company has reserved 7,78,400 equity shares for its employees. Eligible employees will get those shares at a discount of Rs 186 per share to the final offer price.

The basis of allotment of Hyundai Motor India IPO shares will be finalised by October 18, while its equity shares will be available for trading on the stock exchanges effective October 22.