Hyundai IPO
Hyundai Motor India IPO subscribed 2x on last day of sale
Mumbai/IBNS: Hyundai Motor India Ltd's (HMIL) initial public offering (IPO) saw double the subscription on its third day of bidding, with bids for 19.96 crore shares compared to the 9.98 crore shares available, according to data from the NSE at 2 pm on Thursday (Oct. 17).
The IPO, worth Rs 27,870 crore, has garnered significant interest from investors.
The Qualified Institutional Buyers (QIBs) segment received 5.93 times the subscription, while the Retail Individual Investors (RIIs) portion saw 44 percent subscription.
Non-institutional investors booked 41 percent of the shares available to them.
Earlier in the week, HMIL raised Rs 8,315 crore from anchor investors to kickstart the IPO.
This IPO, the largest in Indian history, surpasses Life Insurance Corporation’s (LIC) previous record of Rs 21,000 crore.
Hyundai’s IPO, with a price band set between Rs 1,865 and Rs 1,960 per share, is set to close today (Thursday, Oct. 17).
As of Thursday (Oct. 17), the grey market premium (GMP) for Hyundai shares had dropped to under 1 percent.
Moneycontrol reported, citing sources tracking grey market activity, that the shares are commanding a premium of Rs 14 over the issue price, indicating a modest 0.71 percent listing gain expected on Oct. 22.
Hyundai Motor India Ltd IPO is structured entirely as an Offer for Sale (OFS), with its parent company, Hyundai Motor Company (HMC), selling 14.21 crore shares.
There is no fresh issue of shares in this IPO, and HMC is reducing its stake through the sale.
This marks the first IPO by a car manufacturer in India in over 20 years, following Maruti Suzuki’s listing in 2003.
Since the IPO is solely an OFS, HMIL, India’s second-largest carmaker after Maruti Suzuki, will not raise any capital from this offering.
However, the company believes that the listing will enhance its visibility, increase brand value, provide liquidity, and create a public market for its shares.
At the upper price band, the IPO is valued at Rs 27,870 crore, placing HMIL's market capitalization at approximately Rs 1.6 lakh crore post-issue.
Established in 1996, HMIL currently offers 13 models across various segments in India.
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