New Delhi : South Korean motor manufacturing company Hyundai has recently entered its IPO in the market. There has been excitement with the arrival of this IPO in the market. The IPO of the Indian unit of this company has achieved subscription of up to 42 percent on the second day of its launch.
According to NSE data, bids were received for 4,17,21,442 shares against the offer of 9,97,69,810 shares under the sizeable IPO of about Rs 27,870 crore. Let us tell you that this IPO of Hyundai Motors is the biggest IPO in the Indian stock market. This IPO has left behind the Rs 21,000 crore IPO of Life Insurance Corporation of India i.e. LIC.
got so many subscriptions
The category of qualified institutional buyers or QIBs received 58 per cent subscription, while the segment earmarked for retail individual investors received 38 per cent subscription. Whereas the quota of non-institutional investors has received 26 percent subscription.
No new equity shares issued
Hyundai Motor India Limited (HMIL) has raised Rs 8,315 crore from big anchor investors on Monday, before the opening of the issue. The price range for Hyundai's IPO has been fixed at Rs 1,865-1,960 per share. The issue which opened on Tuesday will close on Thursday. This IPO is entirely based on the offer for sale i.e. OFS of 14,21,94,700 equity shares by the promoter company Hyundai Motor Company i.e. HMC and no new equity shares have been issued in it. In such a situation, HMC will not earn any income from the share sale.
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Brand value will increase
This is the first IPO of a motor manufacturer in the last two decades since Maruti Suzuki's listing in 2003. The South Korean parent company is selling some of its stake through the OFS route. HMIL, the country's second largest carmaker, is hopeful that listing of equity shares will enhance its visibility and brand image, and provide liquidity and public market for the shares.
13 models of vehicles
At the upper level of the price range, the size of the IPO has been estimated at Rs 27,870 crore or $3.3 billion. The market valuation of the company after the issue will be around Rs 1.6 lakh crore i.e. around $ 19 billion. HMIL started operating in India in 1996 and currently sells 13 models of vehicles across different segments.
(with agency input)
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