Hyundai Motor India IPO receives 42% subscription on second day

NEW DELHI: The initial public offering (IPO) of Hyundai Motor India Ltd (HMIL) received 42 percent subscription on the second day of bidding, according to NSE data. The Rs 27,870 crore IPO received bids for 4,17,21,442 shares against the total 9,97,69,810 shares on offer.

The Qualified Institutional Buyers (QIBs) category saw a 58 percent subscription, while the Retail Individual Investors (RIIs) portion was subscribed by 38 percent. The non-institutional investors' category received a 26 percent subscription.

The IPO, with a price band of Rs 1,865-1,960 per share, is set to close on Thursday. The entire IPO is an offer for sale (OFS) of 14,21,94,700 equity shares by the promoter, Hyundai Motor Company (HMC), without any fresh issue component. will not receive any proceeds from the IPO.

Additionally, the subsidiary of the South Korean automaker Hyundai secured Rs 8,315 crore from anchor investors On Monday.

HMIL believes that the listing of its equity shares will enhance its visibility, brand image, and provide liquidity and a public market for the shares. The IPO size is estimated at Rs 27,870 crore (USD 3.3 billion) at the upper end of the price band, valuing the company at around Rs 1.6 lakh crore (about USD 19 billion) post-issue.

This IPO surpasses the previous record held by LIC's initial share sale of Rs 21,000 crore, making it the largest in the country.

HMIL, which began operations in India in 1996, currently offers 13 models across various segments. The book-running lead managers for the offer are Kotak Mahindra Capital Company Ltd, Citigroup Global Markets India Private Ltd, HSBC Securities and Capital Markets (India) Private Ltd, J P Morgan India Private Ltd, and Morgan Stanley India Company Private Ltd.