The first day of the IPO of Hyundai Motor India Limited, the Indian unit of South Korean carmaker Hyundai, turned out to be a complete failure. On Tuesday, the first day of bidding, only 18 percent subscription could be received. According to NSE data, bids were received for 1,77,89,457 shares under the Rs 27,870 crore IPO, while the offer is for 9,97,69,810 shares. Let us also tell you what kind of fate has been seen on the first day of the largest IPO in the country.
Which category did you subscribe to how much?
The IPO received more than 9 lakh applications on the first day. The retail individual investor (RII) category received 26 percent subscription, while the non-institutional investor category received 13 percent subscription. Five percent of the qualified institutional buyers (QIB) quota was met. Hyundai Motor India Limited i.e. HMIL had raised Rs 8,315 crore from anchor investors on Monday.
The largest initial public offering in the country
This will be India’s largest IPO. Earlier, public sector insurance company Life Insurance Corporation of India (LIC)’s Rs 21,000-crore initial public offering was the largest. The company said the HMIL IPO will close on October 17. The company said the proposed IPO is entirely based on an offer for sale (OFS) of 14,21,94,700 equity shares made by promoter Hyundai Motor Company. This IPO is important for the Indian industry because after two decades, an automobile manufacturing company launches its initial public offering (IPO). Previously, Japanese automobile manufacturing company Maruti Suzuki had conducted an initial public offering in 2003.
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What was the rating?
Parent company Hyundai is selling part of its stake through the OFS route. Since this public issue is completely OFS, HMIL will not receive any amount from the IPO. The IPO size in the upper price range is estimated at Rs 27,870 crore and the market valuation of the company after the issue is estimated at around Rs 1.6 lakh crore. HMIL started operations in India in 1996 and sells 13 models in different segments.
