Hyundai Motor India IPO: Public Issue Subscribed 12% On Day 1, Retail Investors Participate; Check Status

Hyundai Motor India's much-anticipated Rs 27,870 crore Initial Public Offering (IPO) witnessed a steady response on its first day of subscription, with 12% of the overall offer getting subscribed within three hours of opening. As of 1:15 pm on October 15, retail investors led the charge, reflecting growing interest in what is set to be the country's largest-ever IPO, surpassing even the record-breaking Life Insurance Corporation (LIC) IPO.

Retail investors showed engagement, booking 20% of the shares allocated for them. A total of 98 lakh shares were bid for, out of the 4.94 crore shares available in the retail portion. Meanwhile, non-institutional investors (NIIs) showed early interest, with bids for 18 lakh shares, representing 8% of the 2.12 crore shares offered to this segment.

Employees of Hyundai Motor India have also participated actively, with 57% of the allocated shares already subscribed. They placed bids for 4.42 lakh shares out of the 7.78 lakh available. However, Qualified Institutional Buyers (QIBs) are yet to join the subscription process, which is scheduled to close on October 17.

Anchor Investors

In a prelude to the IPO's public opening, Hyundai Motor India mobilized Rs 8,315.3 crore from 225 prominent anchor investors on October 14. Notably, the anchor book attracted substantial interest from global institutional investors.

Major institutional players like the Government of Singapore, New World Fund Inc., Monetary Authority of Singapore, Fidelity, Government Pension Fund Global, and American Funds Insurance Series New World Fund collectively invested Rs 2,191.66 crore. The allocation to anchor investors was finalized at Rs 1,960 per share, with 4.2 crore equity shares distributed among them.

Other global investors participating in the anchor round include Baillie Gifford, Vanguard, City of New York Group Trust, Blackrock, Aegon Investment Management, Schroder, Canada Pension Plan Investment Board (CPPIB), JP Morgan, Eastspring Investments, Goldman Sachs, and HSBC Global, among others.

Domestic mutual funds were also key participants in the anchor book, with 1.46 crore equity shares-approximately 34.42% of the total anchor allocation-going to 21 domestic mutual funds across 83 schemes. Notable names include ICICI Prudential Mutual Fund, HDFC Mutual Fund, SBI Mutual Fund, Nippon India Mutual Fund, Kotak Mutual Fund, and Aditya Birla Sun Life Mutual Fund.

Hyundai Motor India IPO

Hyundai Motor India's IPO is an offer-for-sale (OFS) of 14.21 crore equity shares by its Korean parent company, Hyundai Motor Company (HMC). The IPO does not include any fresh issue of shares, as HMC looks to dilute some of its stake in the Indian subsidiary.

The IPO marks a significant moment in India's automotive sector, as it is the first IPO by a carmaker in over two decades, following Maruti Suzuki's listing in 2003. The automaker's South Korean parent is offering a part of its stake through the OFS route.

Hyundai India aims to use the IPO to enhance its visibility, boost its brand image, and provide liquidity for its equity shares in the public market. With its established reputation as one of India's leading car manufacturers, Hyundai Motor India has long been a significant player in the Indian automotive market.