The initial public offering of Hyundai Motor India enters its final day. On Day 1, the mega IPO was subscribed 0.42 times or 42 per cent.
Hyundai Motor India’s mega IPO, part of Hyundai Motor Group, is entirely an offer for sale by up to 14.22 crore shares by Hyundai Motor Company. The issue size of ₹27,870 crore (at the upper end) is the largest ever in the Indian primary market. The price band for the initial share sale has been fixed at ₹1,865-1,960, with a face value of ₹10. Minimum bids can be made for seven shares and multiples of 7 thereafter.
The Hyundai Motor India IPO has reserved 50 per cent of the issue size for qualified institutional buyers (QIB), 15 per cent for non-institutional Institutional Investors (HNIs), and 35 per cent for retail investors. The employee reservation segment comprises a maximum of 778,400 equity shares, and employees will receive a discount of ₹186 a share.
The portion of QIB subscribed 0.58 times, HNIs 0.26 times, and retail investors 0.38 times. However, the silver lining is the employees, as the quota reserved for them received bids 1.31 times.
As the issue is entirely an offer for sales by Hyundai Motor, the funds raised will not go to company.
As part of the IPO, the company on Monday raised ₹8,315 crore from anchor investors. In consultation with book-running lead managers, the company allotted 4.2 crore shares to anchor investors at ₹1,960 a share. Prominent global firms such as Baillie Gifford, Vanguard, the City of New York Group Trust, Moorea Fund, BlackRock, Aegon Investment Management, Schroder, and the Canada Pension Plan Investment Board have participated in the anchor book.
Several domestic asset management and insurance companies, including SBI Mutual Fund, Nippon Life India, Kotak Mutual Fund, and HDFC Life Insurance Company, also made significant investments in Hyundai’s IPO. ICICI Prudential Mutual Fund and HDFC Asset Management Company each acquired shares worth ₹366.5 crore through various schemes.
According to Hyundai’s filing, out of the total 4.2 crore shares allocated, 1.46 crore shares were designated for 21 domestic mutual funds across 83 schemes.
“India is the most exciting market in the world and Hyundai has been successful for the last 26 years. We are currently the second largest Original Equipment Manufacturer (OEM) in the country and we believe this is the right time to go forward to Indianise our operations and become a home brand,” Unsoo Kim, President of Hyundai Motor India, Middle East & Africa Strategic Region, told businessline during IPO launch meet.
“The IPO will ensure that the company is more dedicated to success in India and will provide an opportunity for local and global investors to add in our growth story. We will continue to pursue global standards and practices in terms of governance,” he further said.