Hyundai Motor India's record Rs 27,870 cr IPO fully subscribed

New Delhi: The initial public offer of Hyundai Motor India Ltd, the Indian arm of South Korean automaker Hyundai, got fully subscribed on the third day of the bidding on Thursday.

The Rs 27,870 crore initial share sale got bids for 14,07,68,187 shares against 9,97,69,810 shares on offer, translating into 1.41 times subscription, as per NSE data till 13:21 hours.

The quota for Qualified Institutional Buyers (QIBs) got 3.88 times subscription while the portion meant for Retail Individual Investors (RIIs) received 44 per cent subscription. The non-institutional investors part fetched 39 per cent subscription.

Hyundai Motor India Ltd (HMIL) on Monday raised Rs 8,315 crore from anchor investors.

This is the largest IPO in the country, surpassing LIC's initial share sale of Rs 21,000 crore.

The IPO has a price band of Rs 1,865-1,960 per share.

The IPO is entirely an offer for sale (OFS) of 14,21,94,700 equity shares by promoter Hyundai Motor Company (HMC), with no fresh issue component.

This is the first initial share sale by an automaker in over two decades, following Japanese carmaker Maruti Suzuki's listing in 2003.

Since the public issue is completely an OFS, Hyundai Motor India Ltd, the second largest carmaker in India after Maruti Suzuki, will not receive any proceeds from the IPO.

HMIL stated that it expects that the listing of the equity shares will enhance its visibility and brand image, and provide liquidity and a public market for the shares.

At the upper end of the price band, the IPO size has been pegged at Rs 27,870 crore (USD 3.3 billion), and the company's market valuation at around Rs 1.6 lakh crore (about USD 19 billion) post-issue.

HMIL commenced operations in India in 1996 and currently, sells 13 models across segments.

Kotak Mahindra Capital Company Ltd, Citigroup Global Markets India Private Ltd, HSBC Securities and Capital Markets (India) Private Ltd, J P Morgan India Private Ltd and Morgan Stanley India Company Private Ltd are the book-running lead managers to the offer.