Hyundai Motor India IPO: Rs 8,315 Crore Raise From Anchor Investors Ahead Of Subscription Period

Hyundai Motor India, the country's second-largest carmaker, has set the stage for a grand public debut with its highly anticipated initial public offering (IPO). On October 14, just a day before the public issue opens for subscription, the automobile giant raised Rs 8,315.3 crore from 225 anchor investors. This marks a prelude to its Rs 27,870-crore ($3.3 billion) IPO, which is poised to be one of the largest in Indian history.

Hyundai Motor India, a wholly-owned subsidiary of the South Korea-based Hyundai Motor Company, also counts Kia Motors and Kia Corporation among its sibling companies. The IPO is solely an offer-for-sale by the parent company, with the promoter-Hyundai Motor Company-receiving the entirety of the public issue proceeds (after offer expenses). The Indian arm will not receive any direct funds from the share sale.

Anchor Investors

The automobile maker attracted investments from several marquee global institutional investors, securing a hefty Rs 2,191.66 crore from key 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.

Hyundai finalised the allocation of 4.2 crore equity shares to anchor investors at the upper end of the price band-Rs 1,960 per share. The strong demand from prominent global investors further cements the company's standing in the market.

Among the list of high-profile global investors participating in the anchor book are Baillie Gifford, Vanguard, City of New York Group Trust, Moorea Fund, Blackrock, Aegon Investment Management, Schroder, Canada Pension Plan Investment Board, JP Morgan, Eastspring Investments, Goldman Sachs, Copthall Mauritius, Societe Generale, Morgan Stanley, Citigroup Global, Abu Dhabi Investment Authority, and HSBC Global. These financial giants have added Hyundai Motor India shares to their portfolios.

In addition to international players, several prominent domestic asset management and insurance companies made sizable investments in Hyundai's IPO. Big names such as SBI Mutual Fund, Nippon Life India, Kotak Mutual Fund, Axis Mutual Fund, Aditya Birla Sun Life Trustee, UTI Mutual Fund, Mirae Asset, Franklin India, Motilal Oswal Mutual Fund, Ashoka Whiteoak, Invesco India, and Bank of India Mutual Fund were among those who participated.

The domestic insurance sector was also well represented, with investments from SBI Life Insurance Company, HDFC Life Insurance Company, SBI General Insurance, Canara HSBC Life Insurance, ICICI Lombard General Insurance, Bajaj Allianz General Insurance, and Max Life Insurance Company.

ICICI Prudential Mutual Fund and HDFC Asset Management Company, through their various schemes, acquired shares worth Rs 366.5 crore each in Hyundai. According to the company's filing, out of the total allocation of 4.2 crore shares, 1.46 crore shares were specifically allocated to 21 domestic mutual funds across 83 schemes.

IPO Details

Hyundai Motor India's IPO, set to open for subscription on October 15, has a price band ranging from Rs 1,865 to Rs 1,960 per share. Investors have until October 17 to place their bids, and the company has made special provisions for its employees. Hyundai has reserved 7,78,400 equity shares for its employees, offering them a discount of Rs 186 per share of the final offer price.

Key Dates

The basis of allotment for Hyundai Motor India's IPO shares will be finalised by October 18. Investors can expect the equity shares to be listed on the stock exchanges and available for trading by October 22.

Hyundai Motor India has carved a significant presence in the country's automobile market, standing as the second-largest carmaker after Maruti Suzuki. Known for popular models like the Hyundai Creta, Venue, and i20, the company enjoys a large customer base and widespread recognition.

At Rs 27,870 crore, Hyundai Motor India's IPO is the largest in Indian history to date. The sheer scale of the public offering and the response from anchor investors has already set high expectations for its listing.