Thu, 14 November 2024 10:04:31am
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Hyundai Motor much-anticipated ₹27,870 crore IPO of India is finally here
Hyundai Motor much-anticipated ₹27,870 crore IPO of India is finally here
Hyundai Motor India’s much-anticipated ₹27,870 crore IPO is finally here, marking the first automaker IPO in over two decades. As the public issue opened for bidding, investors eagerly rushed to grab their slice of the automotive giant. But how did the numbers stack up on Day 1? Let’s break it down!
Hyundai Motor India’s highly-awaited ₹27,870 crore Initial Public Offering (IPO) made a solid debut on October 15, 2024, with investors showing a measured yet promising response. This historic public issue is particularly notable as it’s the first IPO by an automaker in India since 2003, when Maruti Suzuki went public.
Day 1 Subscription Numbers
On its first day, Hyundai’s IPO saw an 18% overall subscription. The retail portion performed particularly well, being subscribed at 26%. Investors placed bids for 1.3 crore shares out of the 4.94 crore available for retail investors. Non-institutional investors (NIIs) followed closely, subscribing to 13% of the 2.12 crore shares on offer for them, with bids placed for 27.66 lakh shares.
However, the Qualified Institutional Buyers (QIBs) segment lagged behind, with just 5% of the shares allocated to them being subscribed on Day 1. This lukewarm response from institutional investors will be closely monitored in the coming days as the IPO continues.
Anchor Investors Show Strong Interest
Ahead of the IPO launch, Hyundai raised a staggering ₹8,315.3 crore from 225 prominent anchor investors. Some key participants included the Government of Singapore, the Monetary Authority of Singapore, and Fidelity, which collectively purchased 4.2 crore equity shares at ₹1,960 per share.
Big names like Baillie Gifford, Vanguard, JP Morgan, BlackRock, and the Canada Pension Plan Investment Board also joined the ranks of Hyundai’s shareholders through the anchor investment round. This early backing highlights the strong interest in Hyundai’s public offering from institutional heavyweights.
Why This IPO Is Significant
Hyundai Motor India’s IPO is groundbreaking as it’s the first automaker to hit the Indian public markets in over two decades. Hyundai’s South Korean parent company, Hyundai Motor Company (HMC), is divesting part of its stake in the Indian subsidiary through the offer-for-sale (OFS) route, with no new shares being issued in this IPO. The company’s strong performance in India, coupled with its significant market share in the automotive sector, makes this IPO a major event for investors.
Key Points:
- Hyundai Motor India’s ₹27,870 crore IPO saw an 18% subscription on Day 1.
- The retail portion was subscribed at 26%, while NIIs subscribed at 13%.
- QIBs had a slower start, subscribing to only 5% of the shares allocated.
- Anchor investors, including Singapore's government entities and major global players, invested ₹8,315.3 crore ahead of the IPO.
- This is the first automaker IPO in India since Maruti Suzuki’s listing in 2003.
