Hyundai India's record ₹27,870 crore IPO subscribed 42% on second day

The initial public offer (IPO) of Hyundai Motor India Ltd., which is the largest in India so far and the second largest globally in 2024, has registered a 42 per cent subscription on the second day of bidding on Wednesday, October 16. National Stock Exchange (NSE) data has revealed that the ₹27,870 crore initial share sale got bids for 4,17,21,442 shares against 9,97,69,810 shares on offer.

On Monday, Hyundai Motor India Ltd (HMIL) raised ₹8,315 crore from anchor investors, led by some major firms. On the first day, the IPO received an 18 per cent subscription. The NSE data further revealed that the category for Qualified Institutional Buyers (QIBs) received 58 per cent subscriptions, while the Retail Individual Investors (RIIs) booked 38 per cent subscriptions. Non-institutional investors booked a 26 per cent subscription.

With a price band of ₹1,865 and ₹1,960 per share, Hyundai Motor India's IPO is the largest in India so far, surpassing LIC's initial share sale of ₹21,000 crore. It is the first initial share sale by any automaker in India in more than two decades, following the country's largest car manufacturer Maruti Suzuki's listing in 2003. At the upper end of the price band, the IPO size has been pegged at ₹27,870 crore (USD 3.3 billion), and the company's market valuation at around ₹1.6 lakh crore (about USD 19 billion) post-issue.

This IPO is entirely an offer for sale (OFS) of 14,21,94,700 equity shares by promoter Hyundai Motor Company (HMC), with no fresh issue component. The South Korean parent is diluting some of the stake through the OFS route. Since the public issue is completely an OFS, Hyundai Motor India Ltd, the second largest carmaker in India after Maruti Suzuki, will not receive any proceeds from the IPO.

The automobile giant has stated that it expects the listing of the equity shares will enhance the company's visibility and brand image, and provide liquidity and a public market for the shares.

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