Hyundai Motor India’s IPO Launch Sees Strong Initial Response, Aims to Set New Record

Hyundai Motor India’s ₹27,870-crore initial public offering (IPO) received a steady response on its first day of subscription, with 10% of the overall offer subscribed within the first two hours.

As of 12:20 PM on October 15, the retail portion was 17% subscribed, with retail investors placing bids for 84 lakh shares out of 4.94 crore shares on offer. Non-institutional investors bid for 15 lakh shares, representing 7% of their allotted 2.12 crore shares. Employees showed strong interest, with 46% of their allocated shares subscribed, totaling 3.58 lakh out of 7.78 lakh shares.

Qualified Institutional Buyers (QIBs) have yet to place bids for the IPO, which will remain open until October 17.

The country’s second-largest automaker raised ₹8,315.3 crore from 225 anchor investors on October 14, ahead of the IPO’s launch. Prominent global institutional investors, including the Government of Singapore, Fidelity, and Goldman Sachs, contributed ₹2,191.66 crore to the company.

Hyundai Motor India has allocated 4.2 crore equity shares to anchor investors at a price of ₹1,960 per share. The IPO is poised to set a new record, surpassing the previous high held by Life Insurance Corporation of India, making it the largest IPO in the country to date.

Of the total allocation, 1.46 crore equity shares, or 34.42%, were distributed among 21 domestic mutual funds via 83 schemes, including ICICI Prudential, HDFC, and SBI Mutual Funds.

This IPO is entirely an offer-for-sale (OFS) of 14,21,94,700 equity shares by the Korean promoter, Hyundai Motor Company, with no new issue component. It marks the first initial share sale by an automaker in over two decades, following Maruti Suzuki’s listing in 2003. Hyundai India anticipates that the listing will enhance its visibility, brand image, and provide liquidity in the public market.