Hyundai Motor India IPO Subscribed 10 per cent on Day 1: Retail Investors Lead with 17 per cent Bids

The much-awaited Rs 27,870-crore Initial Public Offering (IPO) of Hyundai Motor India started with a strong response. As of October 15, 10% of the IPO has been subscribed, with 17% of bids going to the retail portion. Below is a comprehensive analysis of the subscription status for various investor types, along with insights on the allocations made by anchor investors.

Day 1 Subscription Breakdown

As of 12:20 PM on October 15, Hyundai Motor India's IPO had received bids for 10% of the total offer.

• Retail Investors: The retail portion was subscribed 17%, with retail investors bidding for 84 lakh shares against the 4.94 crore shares available.
• Non-Institutional Investors (NII): NIIs bid for 15 lakh shares, amounting to 7% of the 2.12 crore shares on offer.
• Employees: Employees placed bids for 3.58 lakh shares, leading to a 46% subscription of the 7.78 lakh shares reserved for them.
• Qualified Institutional Buyers (QIBs): QIBs had yet to place any bids as of the end of the first two hours of the subscription process.

The IPO is scheduled to close on October 17.

Anchor Investor Participation

Ahead of the IPO opening, Hyundai Motor India raised Rs 8,315.3 crore from 225 anchor investors on October 14. Several global and domestic institutions participated, with marquee names from around the world: Government of Singapore, New World Fund Inc, Monetary Authority of Singapore, Fidelity, and Government Pension Fund Global. A total of 4.2 crore equity shares were allocated to anchor investors at Rs 1,960 per share.

Participation from Mutual Funds

Out of the total anchor allocation, 1.46 crore equity shares (34.42%) were allocated to 21 domestic mutual funds through 83 schemes. Major mutual funds that participated include:

• ICICI Prudential MF
• HDFC MF
• SBI MF
• Nippon India MF
• Kotak MF
• Axis MF
• Aditya Birla Sun Life MF
• UTI MF
• Bandhan MF

Largest IPO in Indian History

The Hyundai Motor India IPO is set to surpass the previous record held by Life Insurance Corporation (LIC) of India, making it the country’s largest-ever IPO. This is the first automotive IPO in over two decades, following Maruti Suzuki’s listing in 2003.

The IPO Structure and Hyundai's Expectations

Hyundai Motor Company, the Korean parent company of Hyundai, is offering 14.21 crore equity shares for sale (OFS) as part of this IPO (HMC). This offering has no new issue components. Hyundai Motor India anticipates that increased visibility, a stronger brand, and more share liquidity will result from the listing.

In summary

Day 1 of Hyundai Motor India's IPO saw a favourable early response, with notable participation from anchor and retail investors. As the IPO moves forward, the company could see a possibly greater subscription because QIBs have not yet placed their bids. Investors are keeping a tight eye on this historic sale, which is predicted to break all previous records for the Indian IPO market.