Investors placed bids for 236 million shares worth ₹46,320 crore in the issue, against the 99.8 million shares worth ₹19,555 crore (excluding anchor allotment) offered by Hyundai Motor India’s South Korean promoters. Earlier this week, the company raised ₹8,315 crore (roughly 30% of the IPO size) as part of the anchor allotment from 225 institutional investors.
The IPO of India’s second-largest passenger car manufacturer got off to a modest start with 42% of the issue garnering bids on the second day of the bidding process. The majority of the bids came on the last day.
The qualified institutional buyers (QIBs) portion was subscribed 6.97 times. The employee reserved portion, offered at a discount of ₹186 per share, was subscribed 1.74 times.
The non-institutional investor (NII) or high-net-worth individual portion and the retail investor portion were subscribed at 0.6% and 0.5%, respectively. This is the first IPO in 2024 where the retail portion was undersubscribed and the second in which the NII portion did not receive enough bids.
The unsubscribed portions from the retail and NII categories can be reallocated to other categories, such as QIB. However, any unsubscribed portion from the QIB category cannot be reallocated to other investor categories. About 35% of the total shares in the offer were reserved for retail investors, while QIBs and NIIs were offered 50% and 15% of the issue size, respectively. The issue, which was opened for public subscription on Tuesday, was priced in a range of ₹1,865-₹1,960 apiece. At the upper range of the price band, the company is valued at $19 billion.Kotak Investment Banking, Citi, HSBC, JP Morgan, and Morgan Stanley are the book-running lead managers for the public issue.Hyundai’s IPO size surpassed the previous record held by Life Insurance Corporation of India’s (LIC) ₹20,557 crore issue in May 2022.
The state-owned insurer’s public issue was subscribed 2.95 times, while the ₹18,300 crore public issue of One97 Communications, the holding company of Paytm, was subscribed 1.89 times in November 2021. The ₹15,200 crore public issue of Coal India was subscribed 15.28 times in October 2010.
The success of the Hyundai IPO has helped India’s primary market extend its record-breaking run. Last month, the ₹6,560 crore public issue of Bajaj Housing Finance was subscribed 64 times, attracting bids totalling nearly ₹3.23 lakh crore – the highest-ever demand in Indian primary market history.
In 2024, 64 companies raised ₹92,645 crore, making it the second-highest year for fundraising after 2021, when 63 companies raised ₹1.19 lakh crore.
In comparison, 2023 saw 57 companies raise ₹49,436 crore.