Suspense Crime Sach Ka Dam
The IPO of Hyundai Motor India, the Indian unit of South Korean automobile company Hyundai, was subscribed 18 percent on the first day of bidding. According to data from the National Stock Exchange (NSE), bids were received for 1,77,89,457 shares under the IPO of Rs 27,870 crore, while the offer is for 9,97,69,810 shares. According to a PTI report, the IPO received more than nine lakh applications on the first day. The category of retail individual investors (RIIs) got 26 percent subscription, while the category of non-institutional investors got 13 percent subscription. The quota of qualified institutional buyers (QIBs) was filled by five percent.
According to the news, Hyundai Motor India Limited (HMIL) raised Rs 8,315 crore from anchor investors on Monday. This will be the largest IPO in India. Earlier, the largest IPO in India was the Rs 21,000 crore IPO of public sector insurance company Life Insurance Corporation of India (LIC). The company said that HMIL’s IPO will close on October 17. The company said that the proposed IPO is entirely based on the sale offer (OFS) of 14,21,94,700 equity shares by the promoter Hyundai Motor Company.
IPO of automobile company after two decades
This IPO is important for the Indian industry as an automobile company is bringing its IPO after two decades. Earlier, Japanese automobile manufacturer Maruti Suzuki had brought an IPO in 2003. Parent company Hyundai is selling some of its stake through the sale offer route. Since this public issue is completely OFS, HMIL will not get any amount from the IPO.
The IPO size at the upper price band is pegged at Rs 27,870 crore and the company’s market valuation is pegged at around Rs 1.6 lakh crore post-issue. HMIL started operations in India in 1996 and is selling 13 models across various segments.
