Ahead of the opening of the initial public offering (IPO) today, Hyundai Motor India has raised ₹8,315.3 crore from 225 anchor investors on October 14, as per the exchange data. The company allotted 4.2 crore equity shares to anchor investors at the upper end of the price band of ₹1,960 per share.
The anchor book saw participation from investors spanning across continents and geographies include government funds, life and general insurance cos, emerging markets funds, public employee retirement & pension funds (including Boeing, American states, New York, Germany and India's National Pension Scheme), dividend stock funds, public sector and private sector funds, wealth managers and many others.
The list includes marquee global institutions such as Monetary Authority of Singapore, Fidelity, Government of Singapore, New World Fund Inc, Government Pension Fund Global, and American Funds Insurance Series New World Fund. Adding to it, global investors such as Citigroup Global, Abu Dhabi Investment Authority, Baillie Gifford, Vanguard, City of New York Group Trust, Moorea Fund, Blackrock, Aegon Investment Management, Schroder, Canada Pension Plan Investment Board, JP Morgan, Goldman Sachs, Copthall Mauritius, Societe Generale, Morgan Stanley, and HSBC Global also participated in the anchor book.
Hyundai Motor India, the country's second-largest car maker, looks to raise ₹27,870 crore at a valuation of ₹1.59 lakh crore. The issue is entirely an offer for sale of 14.22 crore shares by Hyundai Motor India’s South Korean parent at a price band of ₹1,865-1,960 per share. Since the public issue is completely an OFS, the company will not receive any proceeds from the IPO. The lot size of the IPO is 7 shares and multiple thereafter. The minimum application amount for retail investors is ₹13,720 for one lot, while the maximum is 14 lots or 98 shares for ₹192,080.
The three-day IPO of Hyundai Motor India will open for subscription today and close on October 17, 2024. The allotment of Hyundai Motor shares to eligible applicants is expected to be finalised on October 18, 2024, while the tentative date for listing of the stock on the BSE and NSE is October 22, 2024.
Ahead of the opening of the country’s biggest IPO, the grey market premium (GMP) of Hyundai Motor India has declined significantly in the unlisted market. The GMP of Hyundai Motor shares have dropped from its peak of ₹570 on September 27 to ₹45 today, indicating flat listing at around ₹2,005, up 2.3% over the issue price.
Several brokerages such as ICICI Direct, Anand Rathi Research, LKP Securities, Aditya Birla Money, and SBI Securities have shared their views on the public issue, with most of them recommending “Subscribe” with a long-term perspective. They broadly remain optimistic about the issue, citing that the valuation of the country’s second-largest auto company appears at a discount to the industry leader, Maruti Suzuki India.
(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)
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