Hyundai IPO subscribed 28% on Day 2

16 Oct 2024 , 03:22 PM

Hyundai Motor India Ltd’s initial public offering (IPO) received a 28 percent subscription on Wednesday’s second day of bidding. According to NSE data, the Indian arm of South Korean automaker Hyundai received bids for 2.75 crore shares vs 9.97 crore shares on offer as of 3 p.m.

The IPO, which has a price band of Rs 1,865-1,960 per share, would be open for public subscription from October 15 to 17. The IPO is fully an offer for sale (OFS) of 14,21,94,700 equity shares by the promoter, Hyundai Motor Company (HMC), with no fresh issue component.

The retail individual investors (RIIs) part of the Rs 27,870 crore initial share offer was 37 percent subscribed, while non-institutional investors received 22 percent subscriptions. The quota for qualified institutional buyers (QIBs) received a 14 percent response.

The employee portion of the issue has been fully booked, with a 1.24x subscription.

On Monday, the business raised Rs 8,315 crore from anchor investors. This is the largest IPO in the country, exceeding the LIC’s inaugural share sale of Rs 21,000 crore.

This is the first initial public offering (IPO) by an automaker in more than 20 years, following the listing of Japan’s Maruti Suzuki in 2003. Hyundai Motor India’s South Korean parent firm is lowering its ownership through an offer for sale (OFS).

Hyundai Motor India Ltd (HMIL), the country’s second-largest carmaker after Maruti Suzuki, will not benefit from the IPO because it is entirely an OFS.

HMIL intends the listing of its shares to increase its visibility, improve its brand image, and provide liquidity through a public market for its shares.

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