Hyundai Motor India IPO day 1: Biggest-ever IPO off to slow start, issue booked 18%; check key details

Hyundai Motor India Limited IPO saw a lukewarm response on the first day of bidding on Tuesday, October 15. The mainboard issue was booked 18%, driven by demand from retail investors.

The largest initial public offering (IPO) in terms of issue size so far in India received bids for over 1.78 crore shares against 9.97 crore shares on offer, leading to an overall subscription of 18% across investor categories, as per the NSE data.

On the first day of bidding, retail investors applied for over 1.3 crore shares compared to the 4.94 crore shares set aside for the category. The retail portion was booked at 26%.

The mainboard issue was subscribed 13% in the Non-Institutional Investors (NIIs) category with bids for more than 27.65 lakh shares against the 2.12 crore shares reserved for the segment.

The Qualified Institutional Buyers (QIBs) applied for only 13.89 lakh shares against more than 2.82 crore shares set aside for the category.

Employees of Hyundai Motor India Limited placed bids for over 6.19 lakh shares against the 7.78 lakh shares set aside for them, booking their quota 80%.

Hyundai Motor India IPO: Offer size, price band and other details

Hyundai Motor India Limited aims to raise ₹27,870.16 crore via the public offer. The IPO is entirely an Offer-for-Sale (OFS) of 14.22 crore shares. Hyundai Motor India IPO price band has been fixed at ₹1,865 to ₹1,960 per share.

The minimum lot size for retail investors interested in applying for the mainboard issue is of 7 shares, amounting to an investment of ₹13,720.

On the other hand, Small Non-Institutional Investors (sNII) can place bids for a minimum lot size of 15 lots, or 105 shares, amounting to ₹2,05,800. The big Non-Institutional Investors (bNII) can place bids for a minimum lot size of 73 lots or 511 shares, translating to an investment of ₹10,01,560.

Hyundai Motor India IPO dates

Hyundai Motor India IPO subscription is scheduled to close on October 17. The share allotment status of Hyundai Motor India IPO is likely to be decided on October 18.

After the finalisation of share allotment status, refunds will be initiated for unsuccessful bidders on Monday, October 21, and successful bidders will receive shares of Hyundai Motor India in their Demat accounts the same day. Hyundai Motor India shares will be listed on the NSE and BSE. Hyundai Motor India IPO listing date has been tentatively fixed as October 22.

Hyundai Motor India raises ₹8,315 crore from anchor investors

Ahead of the launch of its IPO, the Indian arm of the Korean car maker Hyundai mobilised ₹8,315 crore from anchor investors on October 14. In the anchor round, Hyundai Motor India Limited allocated over 4.24 crore equity shares to as many as 225 investors. The shares were allotted as the upper price band of the IPO at ₹1,960 per share, garnering a total of ₹8,315.28 crore.

According to stock exchange data, New World Fund Inc, the Government of Singapore, JP Morgan Funds, Fidelity Funds, BlackRock Global Funds, SBI Life Insurance Company, and HDFC AMC were among the marquee investors. The domestic mutual funds acquired 34.4% of the anchor allocation in the IPO, the BSE data showed.

Hyundai Motor India: Key financials

Hyundai Motor India Limited’s revenue for the quarter ended June 30, 2024, stood at ₹17,567.98 crore. In the June quarter, the company’s profit-after-tax (PAT) and net worth stood at ₹1,489.65 crore and ₹12,148.71 crore, respectively.

In FY24, the car maker’s revenue grew over 16% to ₹71,302.33 crore compared to ₹61,436.64 crore in FY23. The company’s profit-after-tax grew more than 28% to ₹6,060.04 crore in FY24 against ₹4,709.25 crore in FY23.

In FY24, the company’s net worth fell over 46% to ₹10,665.66 crore compared to ₹20,054.82 crore in the preceding financial year.

Hyundai Motor India IPO Registrar

The four book-running lead managers for the mainboard issue are Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, HSBC Securities and Capital Markets Pvt Ltd, JP Morgan India Private Limited, and Morgan Stanley India Company Pvt Ltd. Kfin Technologies Limited is the registrar of Hyundai Motor India IPO.

Hyundai Motor India Promoters

Hyundai Motor Company is the only promoter of Hyundai Motor India. Prior to the public issue the promoter held 100% stake in the company, however the promoter’s shareholding will be reduced to 82.5% after the issue.

Hyundai Motor India IPO objective

Hyundai Motor Company, the promoter of Hyundai Motor India, will receive the proceeds of the public issue after deducting issue-related expenses and taxes, as the IPO is entirely a share sale.

About Hyundai Motor India Limited

Hyundai Motor India Limited was incorporated in 1996. The company manufactures and sells four-wheeler passenger vehicles. The company also manufactures parts such as transmission components and engines. The company has sold over 1.2 crore passenger vehicles both domestically and internationally as of March 31, 2024.