Hyundai Motor India IPO Subscription Details on Day 2, October 16, 2024

16 Oct 2024 , 11:59 AM

Hyundai Motor India Ltd (HMIL) launched its ₹27,870.2 Crore IPO, the largest in India’s history, surpassing LIC’s ₹21,000 Crore IPO.

The IPO, a complete offer-for-sale (OFS) by Hyundai’s South Korean parent company, opened for bidding on October 15 and will close on October 17, 2024.

On the first day, the IPO saw a 0.18 times subscription. As of 11:53 AM on the second day, it received 0.22 times subscription, the Non-institutional investors subscribed to 0.18 times, retail individual investors (RIIs) 0.33 times, and qualified institutional buyers (QIBs) 0.05 times.

Anchor investors submitted bids worth ₹8,315 Crore on October 14. The price band for the IPO is set at ₹1,865 to ₹1,960 per share, with a minimum bid of 7 equity shares.

Hyundai Motor India, the second-largest carmaker in India, began operations in 1996 and currently holds a 15% market share.

The company sold 6,14,721 cars domestically and exported 1,63,155 units in FY24. Its Chennai plant has an annual production capacity of 8,24,000 units, running at 94% capacity.

Hyundai plans to increase production to 1 million units by acquiring a former GM plant in Maharashtra, expected to start operations by FY26. Hyundai has 1,377 dealers in India and sells 13 models, with Creta and Venue among its top-selling vehicles.

The IPO is managed by Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital, and Morgan Stanley, with legal counsel provided by Shardul Amarchand Mangaldas, Cyril Amarchand Mangaldas, and Latham & Watkins.