Institutional demand helps Hyundai cross the IPO line
Hyundai Motor India's ₹27,870 crore initial public offering (IPO) — the country's largest ever — was subscribed 2.37 times on Thursday the final day of bidding. The issue sailed through thanks to a strong appetite from institutional investors as the high net worth and retail investor categories failed to garner enough bids.
Investors placed bids for 236 million shares worth ₹46,320 crore in the issue, against the 99.8 million shares worth ₹19,555 crore (excluding anchor allotment) offered by Hyundai Motor India's South Korean promoters. Earlier this week, the company raised ₹8,315 crore (roughly 30% of the IPO size) as part of the anchor allotment from 225 institutional investors.
The IPO of India's second-largest passenger car manufacturer got off to a modest start with 42% of the issue garnering bids on the second day of the bidding process. The majority of the bids came on the last day.
The qualified institutional buyers (QIBs) portion was subscribed 6.97 times. The employee reserved portion, offered at a discount of ₹186 per share, was subscribed 1.74 times.
The non-institutional investor (NII) or high-net-worth individual portion and the retail investor portion were subscribed at 0.6% and 0.5%, respectively. This is the first IPO in 2024 where the retail portion was undersubscribed and the second in which the NII portion did not receive enough bids.
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