Hyundai's record $3.3 billion IPO subscribed 18% on first day of bidding

Hyundai Motor India's $3.3 billion IPO was 18 per cent subscribed on the first day of bidding on October 15. The subscription on the first day was led by Hyundai India employees who placed orders for four-fifths of the shares reserved for them in the country's largest share sale yet. Employees of Hyundai India bid for 80 per cent of the 778,400 shares reserved for them, exchange data showed. The auto company had offered a discount of 186 rupees per share to eligible employees in the IPO.

Before the open bidding process, institutional anchor investors including BlackRock and Fidelity on Monday snapped up shares worth ₹8,315 crore, just a day ahead of its much-awaited initial share-sale opening for public subscription. BSE has stated in a circular that HMIL has allotted 4.24 crore shares to 225 funds at ₹1,960 apiece, which is also the upper end of the price band. This translates to a transaction volume of ₹8,315.27 crore. Hyundai's shares are expected to start trading in the market on October 22.

With ₹27,870 crore, the Hyundai IPO surpasses the LIC's initial share sale of ₹21,000 crore. Also, Hyundai Motor India's IPO is the second largest in the world in 2024. The public subscription to Hyundai IPO opened on October 15 and will conclude on October 17, with a price band of ₹1,865 - ₹1,960 per share.

The South Korean automaker's IPO is entirely an offer-for-sale (OFS) of 14,21,94,700 equity shares by the promoter Hyundai Motor Company (HMC), with no fresh issue component. This comes as the first IPO from any major automobile manufacturer in India in more than two decades, following India's biggest carmaker Maruti Suzuki's listing in the market in 2003.

This IPO marks Hyundai Motor's first such listing outside its home country South Korea and comes at a time when several companies have been rushing to go public in the Indian equities market that has risen to record highs.

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.