Hyundai India IPO: Raises Rs 8,315 crore from 225 anchor investors

Hyundai Motor India Ltd today raised Rs. 8,315.28 crore from 225 anchor investors ahead of the opening of its initial public offering on Tuesday

The company has finalised the allocation of 4.2 crore equity shares to anchor investors for Rs 1,960 per share, the company said in an exchange filing.

Out of the total allocation to the anchor investors, 1.46 crore equity shares, or 34.42%, were allocated to 21 domestic mutual funds through a total of 83 schemes.

Anchor investors include New World Fund Inc, the Government of Singapore, and Fidelity Investments, while domestic mutual funds include ICICI Prudential, HDFC, SBI, and Nippon Life.

On Wednesday, Hyundai India fixed the price band of its initial public offering in the range of Rs 1,865 – 1,960. The issue will open for subscription to the public on Tuesday, and close on Thursday.

At this price, the company is set to raise Rs 27,870.16 crore ($3.42 billion) at the upper end, or Rs 26,519.31 crore at the lower end.

The IPO will be the largest in the country to date, surpassing Life Insurance Corp’s Rs 21,000-crore IPO two years ago. 

This will also be the first IPO by a carmaker in India in the two decades since Maruti Suzuki’s listing in 2003.

None of the proceeds of the issue will come to the Indian unit. The South Korean parent company Hyundai Motor Company plans to dilute up to 17.5% stake in its wholly-owned India unit through the IPO. It will sell up to 142.19 million equity shares of Rs 10 face value

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