Hyundai Motor India’s shares fell 2% in their market debut today, after a tepid response from retail investors to the country’s largest ever initial public offering.

The stock listed at 1,934 rupees on the National Stock Exchange, compared to its issue price of 1,960 rupees, and was last trading down 2% at 1,920 rupees at 0431 GMT.

Hyundai is India’s No. 2 carmaker with a 15% market share. Its record $3.3 billion IPO was oversubscribed more than two-fold last week, led largely by institutional investors, but pricing concerns deterred retail participation.

Tuesday’s listing in Mumbai is Hyundai Motor’s first such debut outside its home market of South Korea and comes at a time when India’s equity markets have risen sharply.

The two-biggest IPOs prior to Hyundai India – Life Insurance Corporation and Paytm parent One97 communications – both listed at a steep discount.

While Hyundai’s market valuation is much smaller than Indian market leader Maruti Suzuki’s $48 billion, analysts have expressed concerns over the narrower gap when valued by their price-to-earnings ratios.

The issue had valued Hyundai at 26 times its fiscal 2024 earnings, not far off the 29 times multiple for market leader Maruti.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Mumbai:

Hyundai Motor India Ltd’s initial public offering has been subscribed 2.34 times till 4 p.m. on its third and last day on Thursday as the qualified institutional buyers (QIB) portion in the IPO was subscribed nearly 7 times.

According to the latest data (provisional), the reserve portion for the QIB was subscribed 6.94 times, non-Institutional Investors (NII) subscribed 0.57 times, and retail investors subscribed 0.48 times.

The IPO was subscribed 42 per cent on its second day and 18 per cent on the first day. The IPO price band was fixed at Rs 1,865-Rs 1,960 per share.

This IPO is a pure offer for sale (OFS). It is the first offer from an automaker to list in India in over two decades. Due to being OFS, the entire proceeds will go to the promoter.

Ahead of the public issue, Hyundai Motor India raised Rs 8,315 crore from anchor investors on Monday. It allotted 4.24 crore shares at Rs 1,960 apiece to 225 anchor investors, according to a company statement.

Hyundai Motor India held a 14.6 per cent market share in the domestic passenger vehicle (PV) market in Q1 FY25, second to Maruti Suzuki which has a 41 per cent share in this category. However, Hyundai Motor India is the market leader by volume in the mid-size SUV segment with around 38 per cent share as on June’24. It is also India’s second-largest exporter of PV from April 2021 to June 2024.

In FY 2023-24, Hyundai Motor India sold 7.77 lakh vehicles, of which 21 per cent was exported to countries like Africa, the Middle East, Europe and Latin America. The company has 1,366 sales points and 1,550 service outlets in India. Its revenue in the last financial year was Rs 69,829 crore. During this period, the company made a profit of Rs 6,060 crore and Its margin was around 13 per cent. Hyundai Motor India’s revenue in the Q1 of FY 2024-25 was Rs 17,344 crore. From April to September, the company made a profit of Rs 1,489 crore and its margin was 13.5 per cent.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

This is the largest IPO in the country, surpassing LIC’s initial share sale of ₹21,000 crore.
| Photo Credit: Reuters

The Initial Public Offering (IPO) of Hyundai Motor India Limited, the Indian arm of South Korean automaker Hyundai, got fully subscribed on the third day of the bidding on Thursday (October 17, 2024).

The ₹27,870 crore initial share sale got bids for 14,07,68,187 shares against 9,97,69,810 shares on offer, translating into 1.41 times the subscription, as per NSE data till 13:21 hours.

The quota for Qualified Institutional Buyers (QIBs) got 3.88 times subscription while the portion meant for Retail Individual Investors (RIIs) received 44% subscription. The non-institutional investors part fetched 39% subscription. Hyundai Motor India Limited (HMIL) on Monday raised ₹8,315 crore from anchor investors.

This is the largest IPO in the country, surpassing LIC’s initial share sale of ₹21,000 crore. The IPO has a price band of ₹1,865-1,960 per share. 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. Since the public issue is completely an OFS, Hyundai Motor India Limited, 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 ₹27,870 crore ($3.3 billion) and the company’s market valuation at around ₹1.6 lakh crore (about $19 billion) post-issue.

HMIL commenced operations in India in 1996 and currently, sells 13 models across segments. Kotak Mahindra Capital Company Limted, Citigroup Global Markets India Private Ltd, HSBC Securities and Capital Markets (India) Private Limited, J.P. Morgan India Private Limited and Morgan Stanley India Company Private Limited are the book-running lead managers to the offer.