Hyundai Motor India's record Rs 27,870 cr IPO subscribed 42% on Day 2

New Delhi: The initial public offer of Hyundai Motor India Ltd, the Indian arm of South Korean automaker Hyundai, received 42 per cent subscription on the second day of bidding on Wednesday.

The Rs 27,870 crore initial share sale got bids for 4,17,21,442 shares against 9,97,69,810 shares on offer, as per NSE data.

The category for Qualified Institutional Buyers (QIBs) gained 58 per cent subscription while the portion meant for Retail Individual Investors (RIIs) fetched 38 per cent subscription. Non-institutional investors booked 26 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, with a price band of Rs 1,865-1,960 per share, will conclude on Thursday.

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. The South Korean parent is diluting some of the stake through the OFS route.

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.