Hyundai IPO: India’s second-largest OEM garners ₹8,315 crore from anchor investors ahead of public issue

Hyundai Motor India (HMIL), on Monday, raised ₹8,315 crore from anchor investors on Monday, paving the way for the largest-ever initial public offering (IPO) in the country.

The Indian subsidiary of South Korean automaker Hyundai Motor Company (HMC) allocated 42.4 million shares to 225 funds at ₹1,960 per share, the upper limit of its price range.

Prominent investors who took part in the anchor round include the Government of Singapore, New World Fund Inc, Fidelity, ICICI Pru MF, Vanguard, Blackrock, Axis MF, JP Morgan, ADIA, Morgan Stanley, Bofa Securities, and Citigroup, among others.

The allocation comprised 21 domestic mutual funds (MFs), including ICICI Prudential MF, SBI MF, and HDFC MF, which participated through 83 different schemes.

Hyundai IPO details

The piblic issue involves a total offer for sale (OFS) of 14.2 crore shares, which will be sold by the parent company, Hyundai Motor Global. As the IPO consists entirely of an OFS, all proceeds will be directed to the selling shareholder.

Although the complete proceeds from the IPO will benefit the parent company, the management stated that the funds will be allocated towards research and development as well as new innovative initiatives.

The company has set a price range of ₹1865-1960 per share, with investors able to bid in lots of 7 shares.

Hyundai, India’s second-largest car manufacturer, offers a lineup of 13 passenger vehicles, including sedans, hatchbacks, and SUVs. The company plans to capitalize on its robust local manufacturing capacity to establish itself as Hyundai Motor’s largest production hub in Asia.

Kotak Mahindra Capital, Citigroup Global, HSBC Securities, JP Morgan, and Morgan Stanley are the lead managers overseeing the issue, and KFin Technologies serves as the registrar for the offer.

The company’s net profit for the quarter was ₹1,489.65 crore, up from ₹1,329.19 crore in the same period last year.

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