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Hyundai Motor India Launches Largest IPO In Indian History
Hyundai Motor India Limited made a significant entry into the Indian capital market with its IPO today (October 15), setting a new record as the country's largest IPO to date. The offering, which attracted ₹27,870 crore, not only surpassed the previous record set by LIC but also positioned Hyundai's IPO as the second-largest globally in 2024. The shares were priced between ₹1,865 and ₹1,960, with the public subscription window open from October 15 to October 17.
This momentous IPO marks the first time a major automobile manufacturer in India has gone public in over two decades, the last being Maruti Suzuki in 2003. Hyundai's IPO is notably an offer-for-sale (OFS) by its promoter, Hyundai Motor Company (HMC), comprising 14,21,94,700 equity shares without any fresh issue of shares.
Hyundai Gathers Momentum with Anchor Investors
Ahead of the public offering, Hyundai successfully raised ₹8,315 crore from anchor investors on the eve of the IPO launch. These anchor investors include prestigious names such as the New World Fund Inc, the Government of Singapore, Fidelity Funds, BlackRock Global Funds, JP Morgan Funds, HDFC Life Insurance Company, and SBI Life Insurance Company.
The Bombay Stock Exchange disclosed that Hyundai allocated approximately 4.24 crore shares to 225 funds at a rate of ₹1,960 per share, the upper limit of the IPO's price band. This allocation represents a significant transaction volume of ₹8,315.27 crore.
Significantly, domestic mutual funds were allocated 1.46 crore equity shares across 83 schemes, accounting for 34.42 per cent of the total shares allocated to anchor investors. Among these mutual funds were leading players like ICICI Prudential Mutual Fund, HDFC MF, SBI MF, Nippon India MF, Kotak MF, Axis MF, Aditya Birla Sun Life MF, UTI MF, and Bandhan MF, highlighting the strong domestic interest in Hyundai's market debut.
The launch of Hyundai's IPO not only underscores the vibrant dynamics of India's capital market but also heralds a new era for the automotive industry in the country. It signifies a growing interest in automotive stocks, reflecting the sector's potential for growth and innovation.
This event is particularly noteworthy as it signals the increasing significance of electric vehicles, upcoming cars, and cutting-edge technology in transforming the automotive landscape in India.
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