Hyundai Motor India Raises Rs 8,315 Crore From Anchor Investors Ahead Of IPO

Hyundai Motor India Ltd. has raised approximately Rs 8,315 crore from anchor investors on Monday, ahead of its record initial public offering. The company allotted 4.24 crore shares at Rs 1,960 apiece to 225 anchor investors, according to a statement.

New World Fund Inc. has secured the highest allocation with a 9.29% stake. SBI Life Insurance Co., Government Pension Fund Global, and HDFC Life Insurance Co. received the second-highest allotment of 3.21% equity, while HSBC Kotak Flexi Cap Fund got a 2.38% stake in the company.

The company will launch its IPO on Tuesday to raise up to Rs 27,870 crore, making it India’s biggest IPO, surpassing Life Insurance Corp.'s Rs 21,000 crore IPO in 2022. The company has set a price band of Rs 1,865–Rs 1,960 per share for its three-day IPO, which is a pure offer for sale of 14.2 crore shares. The minimum application lot size is seven shares.

Twenty-one domestic mutual funds have applied through 83 schemes, the automobile giant said in an exchange filing on Monday. They have collectively netted 34.42% of the anchor portion. ICICI Prudential, HDFC, State Bank of India, Kotak, and Nippon were among the top fund houses in this category.

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. are the book-running lead managers for the Hyundai Motor IPO.

The offer will conclude on Thursday, after which the shares will list on the BSE and the NSE. The company will not receive any proceeds from the IPO, as the issue consists solely of an OFS. The entire proceeds will be received by the promoter Hyundai Motor Co.