Hyundai Motor India's Record-Breaking IPO: A New Chapter in Auto Industry

Hyundai Motor India Ltd, a subsidiary of South Korean automaker Hyundai, launched India's largest IPO, surpassing LIC's initial Rs 21,000 crore sale. The Rs 27,870 crore offer, entirely an Offer For Sale, aims to enhance brand visibility and liquidity. The IPO received 9% subscription on the first day.

Hyundai Motor India Ltd, the Indian subsidiary of South Korea's Hyundai, launched its highly anticipated initial public offering (IPO), marking the country's largest to date. The IPO, which surfaced as an Offer For Sale (OFS) of Rs 27,870 crore, surpasses the Life Insurance Corporation's previous record of Rs 21,000 crore.

On Tuesday, bids were made for 89,92,522 shares out of the 9,97,69,810 shares on offer. According to the NSE, 15% came from Retail Individual Investors (RIIs) and 6% from non-institutional investors. The conglomerate succeeded in raising Rs 8,315 crore from anchor investors during the preceding Monday.

Despite no proceeds from the IPO due to its OFS nature, HMIL anticipates that the listing will boost its brand image and provide liquidity in the market. Post-IPO, HMIL is projected to achieve a market valuation of Rs 1.6 lakh crore at the upper price band. Financial entities like Kotak Mahindra Capital and Citigroup Global are driving the offer.

(With inputs from agencies.)