Hyundai Motors IPO: The initial public offering (IPO) of Hyundai Motor India Ltd, the Indian unit of South Korean automaker Hyundai, received an 18 percent subscription on the first day of bidding on Tuesday. According to NSE data, bids were received for 1,77,89,457 shares under the Rs 27,870-crore IPO, while the offer was for 9,97,69,810 shares. The IPO received over nine lakh applications on the first day.

Who subscribed how much

The category of retail individual investors (RIIs) got 26 percent subscription, while the category of non-institutional investors got 13 percent subscription. The quota of qualified institutional buyers (QIBs) was filled by five percent. Hyundai Motor India Ltd. (HMIL) raised Rs 8,315 crore from anchor investors on Monday. This is the largest IPO in India. Earlier, the largest IPO was the Rs 21,000 crore IPO of public sector insurance company Life Insurance Corporation of India (LIC). The company said that HMIL's IPO will close on October 17. The company said that the proposed IPO is entirely based on the sale offer (OFS) of 14,21,94,700 equity shares by the promoter Hyundai Motor Company.

Important for the auto sector

This IPO is important for the Indian industry as after two decades an automobile manufacturer is bringing its IPO. Earlier, Japanese automobile manufacturer Maruti Suzuki had brought an IPO in 2003. Parent company Hyundai is selling some of its stake through the sale offer route. Since this public issue is completely OFS, HMIL will not get any amount from the IPO. The size of the IPO at the upper price range is Rs 27,870 crore and the market valuation of the company is estimated to be around Rs 1.6 lakh crore after the issue. HMIL started operations in India in 1996 and is selling 13 models in different segments.