Hyundai Motor India Secures ₹8,315 Crore from Anchor Investors

15 Oct 2024 , 07:20 AM

Hyundai Motor India, the country’s second-largest automobile manufacturer, has successfully mobilized ₹8,315.3 crore from 225 anchor investors as of October 14, just a day before the opening of its public issue. This initiative is part of the South Korea-based Hyundai Motor Company, which also owns Kia Motors and Kia Corporation.

Notable global institutional investors participating in this funding round include the Government of Singapore, New World Fund Inc, the Monetary Authority of Singapore, Fidelity, the Government Pension Fund Global, and American Funds Insurance Series New World Fund, collectively investing ₹2,191.66 crore in the company.

Hyundai has allocated 4.2 crore equity shares to these anchor investors at a price of ₹1,960 per 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 also joined the ranks of shareholders.

Additionally, several asset management and insurance companies, including SBI Mutual Fund, Nippon Life India, Kotak Mutual Fund, and HDFC Life Insurance Company, have made significant investments in Hyundai’s IPO. Notably, 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.

Hyundai Motor India’s ₹27,870-crore ($3.3 billion) initial public offering is set to open for subscription on October 15, with a price band ranging from ₹1,865 to ₹1,960 per share. Bidding will conclude on October 17.

The IPO consists entirely of an offer-for-sale by the parent company, Hyundai Motor Company, which holds a 100% stake in its Indian subsidiary. Consequently, the funds raised (excluding offer expenses) will be directed to the promoter, while the company itself will not receive any capital from this issue.

Hyundai has also reserved 778,400 equity shares for its employees, who will have the opportunity to purchase these shares at a discount of ₹186 per share from the final offer price.

The allotment of shares for the Hyundai Motor India IPO is expected to be finalized by October 18, and trading of the equity shares on stock exchanges will commence on October 22.