Hyundai’s Rs 27,870-Cr IPO Gets 9% On Day-1

New Delhi: The initial public offer of Hyundai Motor India Ltd (HMIL), the Indian arm of South Korean automaker Hyundai, received 9 per cent subscription during the initial hours of bidding on Tuesday.The Rs 27,870 crore initial share sale received bids for 89,92,522 shares against 9,97,69,810 shares on offer, as per NSE data till 11:39 hours. The portion for Retail Individual Investors (RIIs) got subscribed 15 per cent while the non-institutional investors category fetched 6 per cent subscription.

Hyundai on Monday raised Rs8,315 crore from 225 anchor investors Rs1,960 per share (the upper end of the price band), a day before its public issue opening. It included 21 domestic mutual funds through a total of 83 schemes (34.42% of the total allocation to anchor investors). This is the largest IPO in the country, surpassing LIC’s initial share sale of Rs 21,000 crore. The IPO, with a price band of Rs 1,865-1,960 per share, will remain open for public subscription from October 15 to October 17.

The 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. This is the first initial share sale of an automaker in over two decades, following Japanese carmaker Maruti Suzuki’s listing in 2003.