Hyundai Motor India's ₹27,870 Crore IPO Kicks Off With 18% Subscription On Day 1

Hyundai Motor India’s Rs 27,870 crore IPO, which was one of the much awaited public issue, made a steady start on its first day of subscription on Tuesday (October 15).

Hyundai IPO (Day 1)

The Hyundai Motor India's public issue on the first day of bidding saw an 18 per cent subscription.

The retail portion of the company was subscribed 26 per cent, with investors placing bids for 1.3 crore shares out of the 4.94 crore available.

Furthermore, the Non-institutional investors (NIIs) bid for 27.66 lakh shares, amounting to 13 per cent of the 2.12 crore shares on offer.

The portion reserved for qualified institutional buyers (QIBs) saw a more modest response, with only 5 per cent of the allocated shares being subscribed on the first day of bidding.

Anchor Investors

Prior to this, a day before the opening of the public issue the company secured a a substantial Rs 8,315.3 crore from 225 anchor investors.

Some of the key major players in the anchor investors round included the Government of Singapore, Monetary Authority of Singapore, and Fidelity. Collectively, they were allocated 4.2 crore equity shares at a price of Rs 1,960 per share.

Other players like Baillie Gifford, Vanguard, JP Morgan, Blackrock, and Canada Pension Plan Investment Board have also joined the ranks of Hyundai’s shareholders through the anchor investment process.

First Automaker IPO in Two Decades

What makes Hyundai Motor India’s IPO in the lime light is that it is the first automaker IPO in India in over two decades.

The last such listing was by Japanese carmaker Maruti Suzuki in 2003. Hyundai’s South Korean parent company, Hyundai Motor Company (HMC), is divesting some of its stake in the Indian subsidiary through the offer-for-sale (OFS) route, with no new shares being issued in this IPO.