Hyundai Motor IPO subscribed 42% on day 2
Mumbai: Hyundai Motor India's initial public offering (IPO) was 42% subscribed on the second day of bidding, October 16.
The Indian subsidiary of the South Korean automaker received bids for 4.17 crore shares out of the 9.97 crore shares available, Moneycontrol reported, citing NSE data as of 3 pm.
The retail individual investors (RIIs) portion saw 38% subscription, while the non-institutional investors category was subscribed 26%.
The quota for qualified institutional buyers (QIBs) reached 58% subscription.
Meanwhile, the employee portion of the IPO was fully subscribed at 1.31 times.
On Monday, the company raised Rs 8,315 crore from anchor investors, marking the largest IPO in India, surpassing LIC's Rs 21,000 crore share sale.
The IPO is priced between Rs 1,865-1,960 per share and will remain open for public subscription until October 17.
It consists entirely of an offer for sale (OFS) of 14.21 crore equity shares by Hyundai Motor Company (HMC), with no new shares being issued.
Reports from grey market trackers suggest that Hyundai Motor India's shares are commanding a premium of Rs 35 in unofficial trading, reflecting an approximate 2% premium.
The shares are set to be listed on both NSE and BSE on October 22, with allotment to successful bidders taking place on October 18.
This IPO is the first by an automaker in over two decades, following the listing of Maruti Suzuki in 2003.
Hyundai Motor India's South Korean parent is reducing its stake through the OFS route, meaning that HMIL, India’s second-largest carmaker, will not receive any funds from the IPO.
Hyundai Motor India expects the listing to enhance its brand visibility and offer liquidity for its shares in the public market.
Valued at Rs 27,870 crore (around USD 3.3 billion) at the top end of the price range, the company’s post-listing market capitalization is estimated at approximately Rs 1.6 lakh crore (about USD 19 billion), the Moneycontrol report said.
Hyundai Motor India, which began operations in 1996, currently offers 13 models across various segments in the Indian market.
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