This is the largest IPO in the country, surpassing LIC’s initial share sale of ₹21,000 crore.
| Photo Credit: Reuters
The Initial Public Offering (IPO) of Hyundai Motor India Limited, the Indian arm of South Korean automaker Hyundai, got fully subscribed on the third day of the bidding on Thursday (October 17, 2024).
The ₹27,870 crore initial share sale got bids for 14,07,68,187 shares against 9,97,69,810 shares on offer, translating into 1.41 times the subscription, as per NSE data till 13:21 hours.
The quota for Qualified Institutional Buyers (QIBs) got 3.88 times subscription while the portion meant for Retail Individual Investors (RIIs) received 44% subscription. The non-institutional investors part fetched 39% subscription. Hyundai Motor India Limited (HMIL) on Monday raised ₹8,315 crore from anchor investors.
This is the largest IPO in the country, surpassing LIC’s initial share sale of ₹21,000 crore. The IPO has a price band of ₹1,865-1,960 per share. The IPO is entirely an offer for sale (OFS) of 14,21,94,700 equity shares by promoter Hyundai Motor Company (HMC), with no fresh issue component.
This is the first initial share sale by an automaker in over two decades, following Japanese carmaker Maruti Suzuki’s listing in 2003. Since the public issue is completely an OFS, Hyundai Motor India Limited, the second largest carmaker in India after Maruti Suzuki, will not receive any proceeds from the IPO.
HMIL stated that it expects that the listing of the equity shares will enhance its visibility and brand image and provide liquidity and a public market for the shares.
At the upper end of the price band, the IPO size has been pegged at ₹27,870 crore ($3.3 billion) and the company’s market valuation at around ₹1.6 lakh crore (about $19 billion) post-issue.
HMIL commenced operations in India in 1996 and currently, sells 13 models across segments. Kotak Mahindra Capital Company Limted, Citigroup Global Markets India Private Ltd, HSBC Securities and Capital Markets (India) Private Limited, J.P. Morgan India Private Limited and Morgan Stanley India Company Private Limited are the book-running lead managers to the offer.
Published – October 17, 2024 02:17 pm IST
