New Delhi: Hyundai Motor India Ltd's IPO, the Indian subsidiary of South Korean automaker Hyundai, was fully subscribed by the third day of bidding on Thursday. According to NSE data till 13:21 hours, the Rs 27,870 crore initial public offering received bids for 14,07,68,187 shares, which is 1.41 times the 9,97,69,810 shares on offer. The allocation for Qualified Institutional Buyers (QIBs) was oversubscribed by 3.88 times, while the portion designated for Retail Individual Investors (RIIs) received 44 percent subscription. The section for non-institutional investors received a subscription rate of 39 percent.
Record-Breaking Offering: Largest IPO in India Since LIC, Oversubscription Highlights Strong Deman
On Monday, Hyundai Motor India Ltd (HMIL) gathered Rs 8,315 crore from anchor investors. This IPO is the biggest in the nation, exceeding LIC's first public offering of Rs 21,000 crore. The initial public offering is priced between Rs 1,865 and Rs 1,960 per share. The IPO consists of 14,21,94,700 equity shares sold by promoter Hyundai Motor Company (HMC) through an offer for sale (OFS), with no new shares being issued. This marks the first automaker to go public in more than twenty years, since Maruti Suzuki, a Japanese car company, had its IPO in 2003.
As the IPO is solely an OFS, Hyundai Motor India Ltd, the second biggest car manufacturer in India following Maruti Suzuki, will not benefit financially from the public offering. HMIL expressed its anticipation that the equity shares listing will boost its visibility and brand image, as well as offer liquidity and a public market for the shares. The IPO is set at Rs 27,870 crore (USD 3.3 billion) and the company's market value after the issue is around Rs 1.6 lakh crore (about USD 19 billion) at the high end of the price range. HMIL began operating in India in 1996 and currently offers 13 different models in various categories. Kotak Mahindra Capital Company Ltd and Citigroup Global Markets India Private Ltd.
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