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Hyundai Motor India, which came out with the country’s largest initial public offering (IPO) of Rs 27,870 crore, debuted on the stock exchanges on Tuesday at a listing price of Rs 1,934 on the NSE. That’s 1.3 percent lower than the issue price of Rs 1,960.
- Hyundai diluted 17.5 percent stake in its wholly-owned India unit
- This was the second IPO by a carmaker since Maruti Suzuki’s listing in 2003
- The company raised around Rs 27,870 crore in the issue
The three-day IPO subscription saw tepid investor interest in the first two days but a strong demand from Qualified Institutional Buyers (QIBs) on the final day ensured the successful completion. The issue drew subscriptions 2.37 times the number of shares on offer.
The IPO by India’s second-largest carmaker surpassed Life Insurance Corp’s Rs 21,000-crore offering two years ago. This was also the first IPO by a carmaker in India in the two decades since Maruti Suzuki’s listing in 2003.
“Today’s listing shows that HMIL is a key part of India. It demonstrates our commitment to this great nation and ensures that our shareholders and HMIL will continue to grow together,” said Hyundai Motor Group Executive Chair Euisun Chung while speaking at the listing ceremony.
Hyundai India’s IPO was a pure offer for sale. None of the proceeds of the issue will come to the Indian unit. The South Korean parent company Hyundai Motor Company diluted 17.5 percent stake in its wholly-owned India unit.
The automaker raised Rs 8,315.28 crore from 225 anchor investors last week. It finalized the allocation of 4.2 crore equity shares to anchor investors for Rs 1,960 per share. India is the third largest market for the South Korean company, accounting for around 14 percent of its global sales.
Kotak Mahindra, Citi Group, HSBC Securities, JP Morgan and Morgan Stanley are the lead book-running managers for the IPO.
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