Hyundai Motor India Ltd’s (HMIL) Rs 27,870 crore initial public offering (IPO) saw a twofold subscription on its last day of bidding, Thursday. As of 2 PM, NSE data showed bids for 19.96 crore shares against 9.98 crore shares on offer.
The Qualified Institutional Buyers (QIBs) category drove demand, with 5.93 times subscription, while Retail Individual Investors (RIIs) subscribed to only 44 percent. Non-institutional investors recorded a 41 percent subscription rate. Earlier in the week, HMIL raised Rs 8,315 crore from anchor investors.
The IPO marks the largest in India’s history, exceeding LIC’s Rs 21,000 crore offering. Priced between Rs 1,865-1,960 per share, the IPO concludes today.
However, Hyundai’s GMP fell below 1 per cent and was trading at Rs 14 above the IPO price on October 17, indicating flat 0.71 per cent premium for listing expected on October 22.
The IPO was a full OFS of 14.21 crore shares by Hyundai’s promoter, HMC, and hence did not involve the issue of fresh shares. This was the first IPO by an automaker in India since Maruti Suzuki’s listing in 2003. HMC is diluting its stake through the offer.
Proceeds from public issue will not stay with the company. HMIL is India’s second-biggest carmaker. The listing is primarily to have more visibility, increase brand value, and create a public market for the company’s shares.
The offer price values HMIL at about Rs 1.6 lakh crore post-issue, en was founded in 1996 and currently sells 13 models across various segments in India.
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Source: Moneycontrol
News Desk
