Shares of India’s second-largest car maker Hyundai Motor India allotted to anchor investors have opened up for trade after the end of the six-month shareholder lock-in on April 21, Nuvama Alternative and Quantitative Research said. These shares amount to 62% of the outstanding equity, or more than 50.78 crore shares, coming into the open market for trading after turning eligible after the six-month lock-in period lapsed.
Hyundai Motor India's shares ended the session higher by close to 2 percent on April 21, and some analysts see potential for a 21 percent upside in Hyundai Motor India shares, backed by a consensus ‘Buy’ rating.
The company’s initial public offering (IPO) in October 2024 saw the sale of 14.22 crore equity shares on offer, raising Rs 27,870 crore (approximately $3.3 billion). The IPO was fully subscribed, with most of the shares sold by the parent firm Hyundai Motor Company through an offer-for-sale (OFS).
While the lock-in period for the stock has ended, Hyundai Motor India is yet to disclose its shareholding pattern for the quarter that ended on March 31.
As per the shareholding pattern disclosed at the end of the December quarter, India’s domestic mutual funds held a 5.1 percent stake in Hyundai Motor India, while LIC, the country’s largest insurer, owned 1.21 percent. Foreign Portfolio Investors (FPIs) held 6.7 percent and small retail investors - those with investments up to Rs 2 lakh - held a 3.22 percent stake, representing about 12.4 lakh shareholders. The company’s South Korean promoters continue to hold an 82.5 percent stake, which remains above the 75 percent threshold required to comply with the Minimum Public Shareholding (MPS) norms.
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