Hyundai Motor India IPO Sees 42 Per Cent Subscription On Day 2

Hyundai Motor IPO: On Monday, Hyundai Motor India raised Rs 8,315 crore from anchor investors ahead of the IPO, which is now the largest in India's history, surpassing the Rs 21,000 crore IPO of LIC

Hyundai IPO: The initial public offering (IPO) of Hyundai Motor India Ltd (HMIL), the Indian arm of South Korean auto giant Hyundai, garnered 42 per cent subscription by the second day of bidding on Wednesday, according to data from the National Stock Exchange (NSE).

The Rs 27,870 crore IPO received bids for 4.17 crore shares against the 9.98 crore shares on offer. The category for Qualified Institutional Buyers (QIBs) saw the highest interest with 58 per cent subscription, while Retail Individual Investors (RIIs) accounted for 38 per cent. Non-institutional investors subscribed to 26 per cent of the shares.

Earlier on Monday, HMIL raised Rs 8,315 crore from anchor investors ahead of the IPO, which is now the largest in India's history, surpassing the Rs 21,000 crore IPO of Life Insurance Corporation (LIC).

Priced between Rs 1,865 and Rs 1,960 per share, the IPO will close on Thursday. The offering is entirely an Offer for Sale (OFS) of 14.22 crore equity shares by Hyundai Motor Company (HMC), the parent firm, with no fresh equity issuance involved.

This marks the first IPO by a carmaker in India in over two decades, following Maruti Suzuki's listing in 2003. HMIL, India’s second-largest carmaker, will not receive any proceeds from the sale as it is fully an OFS.

Hyundai stated that the listing would boost its brand visibility and provide liquidity for shareholders. At the top end of the price band, the IPO would value the company at around Rs 1.6 lakh crore ($19 billion).

HMIL began operations in India in 1996 and currently sells 13 models across various segments. Leading global firms, including Kotak Mahindra Capital Company, Citigroup Global Markets, HSBC, J.P. Morgan, and Morgan Stanley, are managing the IPO.

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