Hyundai Motor India Ltd. has successfully raised approximately ₹8,315 crore from anchor investors ahead of its record-breaking initial public offering (IPO). The company announced the allotment of 4.24 crore shares at ₹1,960 each to 225 anchor investors, as detailed in a recent statement.
Top Investors in the Allotment
Among the anchor investors, New World Fund Inc. secured the highest allocation with a 9.29% stake in the company. SBI Life Insurance Co., Government Pension Fund Global, and HDFC Life Insurance Co. each received a substantial allocation of 3.21% equity, while HSBC Kotak Flexi Cap Fund obtained a 2.38% stake.
Record-Breaking IPO Launch
Hyundai Motor India is set to launch its IPO on Tuesday, aiming to raise up to ₹27,870 crore, which would make it India’s largest IPO to date, surpassing the ₹21,000 crore IPO of Life Insurance Corporation in 2022. The price band for the three-day IPO has been set between ₹1,865 and ₹1,960 per share, featuring a pure offer for sale of 14.2 crore shares. The minimum application lot size is seven shares.
Mutual Funds Show Strong Interest
Twenty-one domestic mutual funds have participated through 83 schemes, collectively acquiring 34.42% of the anchor portion, according to the automobile giant's exchange filing on Monday. Notable fund houses, including ICICI Prudential, HDFC, State Bank of India, Kotak, and Nippon, are among the leading investors.
The book-running lead managers for the Hyundai Motor IPO include Kotak Mahindra Capital Co., Citigroup Global Markets India Pvt., HSBC Securities and Capital Markets India Pvt., JP Morgan India Pvt., and Morgan Stanley India Co.
IPO Timeline and Proceeds
The IPO offering will conclude on Thursday, after which shares will be listed on both the BSE and NSE. Importantly, Hyundai Motor India will not receive any proceeds from this IPO, as it consists solely of an offer for sale (OFS), with all proceeds going to the promoter, Hyundai Motor Co.
Inputs by Agencies
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