Hyundai's IPO subscribed 2.37 times on final day

The initial public offer of Hyundai Motor India Ltd, the Indian arm of South Korean automaker Hyundai, got subscribed 2.37 times on the third day of the bidding on Thursday, helped by institutional buyers.

This is the largest IPO in the country, surpassing LIC's initial share sale of Rs 21,000 crore.

The Rs 27,870 crore initial share sale got bids for 23,63,26,937 shares against 9,97,69,810 shares on offer, translating into 2.37 times subscription, as per NSE data.

The demand was led by Qualified Institutional Buyers (QIBs) who bid for 6.97 times the shares earmarked for them.

The portion meant for non-institutional investors fetched 60 per cent subscription and Retail Individual Investors (RIIs) received 50 per cent subscription.

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

Hyundai Motor India Ltd (HMIL) on Monday raised Rs 8,315 crore from anchor investors.

The IPO has a price band of Rs 1,865-1,960 per share.

The initial public offer (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.

Since the public issue is completely an OFS, Hyundai Motor India Ltd, the second largest carmaker in India after Maruti Suzuki, will not receive any proceeds from the IPO.

HMIL stated that it expects that the listing of the equity shares will enhance its visibility and brand image, and provide liquidity and a public market for the shares.

At the upper end of the price band, the IPO size has been pegged at Rs 27,870 crore ($3.3 billion), and the company's market valuation at around Rs 1.6 lakh crore (about $19 billion) post-issue.

HMIL commenced operations in India in 1996 and currently, sells 13 models across segments.

Kotak Mahindra Capital Company Ltd, Citigroup Global Markets India Private Ltd, HSBC Securities and Capital Markets (India) Private Ltd, J P Morgan India Private Ltd and Morgan Stanley India Company Private Ltd are the book-running lead managers to the offer.