Hyundai Motor India Limited’s initial public offering (IPO) received 2.37 times subscription on the last day on Thursday. This offer could get so much support with the help of institutional buyers on the third day of bidding. It is the country’s largest IPO, surpassing LIC’s Rs 21,000 crore initial share sale. The initial share sale worth Rs 27,870 crore received bids for 23,63,26,937 shares against the offer of 9,97,69,810 shares, according to NSE data.
Who subscribed how many?
According to the news, the demand under the IPO was led by qualified institutional buyers (QIBs), who bid 6.97 times the shares allotted to them. The portion earmarked for non-institutional investors received 60 per cent subscription and retail individual investors (RIIs) received 50 per cent subscriptions. It is the first initial share sale by an automaker in more than two decades, following Japanese carmaker Maruti Suzuki’s listing in 2003.
IPO price band Rs 1,865-1,960 per share
Hyundai Motor India Ltd (HMIL) on Monday raised Rs 8,315 crore from anchor investors. The price band of the IPO is Rs 1,865-1,960 per share. The initial public offering (IPO) is entirely an offer for sale (OFS) of 14,21,94,700 equity shares by promoter Hyundai Motor Company (HMC), with no new issue component. Since the public issue is completely OFS, Hyundai Motor India Ltd, the second largest carmaker in India after Maruti Suzuki, will not receive any proceeds from the IPO.
Market valuation of the company
HMIL said it expects the listing of equity shares to 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 is pegged at Rs 27,870 crore (USD 3.3 billion), and the market valuation of the company is around Rs 1.6 lakh crore (about USD 19 billion). HMIL started operations in India in 1996 and currently, sells 13 models across different segments.
Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, 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.
