Shares of newly-listed Hyundai Motor India Limited, the Indian arm of South Korean automaker Hyundai, jumped 6% on Wednesday (October 23, 2024), a day after making the market debut.

The stock climbed 5.91% to ₹1,928.15 from the previous close on the BSE. At the NSE, the stock surged 6% to ₹1,928.90. Shares of Hyundai Motor India Limited on Tuesday (October 22, 2024) made a muted market debut and ended more than 7% lower against the issue price of ₹1,960.

Hyundai Motor India debuts at BSE at a discount of 1.48%, falls nearly 6% post listing

The Initial Public Offer (IPO) of Hyundai Motor India Limited got subscribed 2.37 times on the last day of the bidding, helped by institutional buyers. This was the biggest IPO in the country, surpassing LIC’s initial share sale of ₹21,000 crore. The ₹27,870 crore initial share sale had a price band of ₹1,865-1,960 per share.

This was the first initial share sale by an automaker in over two decades, following Japanese carmaker Maruti Suzuki’s listing in 2003. The IPO was entirely an Offer For Sale (OFS) of 14,21,94,700 equity shares by promoter Hyundai Motor Company (HMC), with no fresh issue component. HMIL commenced operations in India in 1996 and currently sells 13 models across segments.

File picture of Hyundai Motor India logo
| Photo Credit: Reuters

The initial public offer of Hyundai Motor India Ltd, the Indian arm of South Korean automaker Hyundai, received 9 per cent subscription during the initial hours of bidding on Tuesday (October 15, 2024).

The ₹27,870 crore initial share sale received bids for 89,92,522 shares against 9,97,69,810 shares on offer, as per NSE data till 11:39 hours.

The portion for Retail Individual Investors (RIIs) got subscribed 15% while the non-institutional investors category fetched 6 per cent subscription.

Hyundai Motor India Ltd (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, with a price band of ₹1,865-1,960 per share, will remain open for public subscription from October 15 to October 17.

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 of an automaker in over two decades, following Japanese carmaker Maruti Suzuki’s listing in 2003. The South Korean parent is diluting some of the stake through the OFS route.

Since the public issue is completely an OFS, Hyundai Motor India Ltd, 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 our 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 Ltd, Citigroup Global Markets India Private Ltd, HSBC Securities and Capital Markets (India) Private Ltd, J.P. Morgan India Private Ltd and Morgan Stanley India Company Private Ltd are the book running lead managers to the offer.