Hyundai Motor India’s highly anticipated initial public offering (IPO) has garnered overwhelming response, with subscription soaring to 1.87 times on the third day of bidding. The stellar demand has been primarily driven by qualified institutional buyers (QIBs), who have shown keen interest in the offering.
As of the third day, the IPO has received bids for 8.89 crore equity shares against the offered 4.75 crore shares, translating to a subscription rate of 1.87 times. QIBs have been at the forefront of the demand, subscribing to 3.17 times the allocated quota.
The impressive response from institutional investors has been complemented by decent participation from retail investors and non-institutional investors. Retail investors have subscribed to 43% of their allocated quota, while non-institutional investors have subscribed to 1.33 times their allocated shares.
Hyundai Motor India’s IPO aims to raise Rs 28,000 crore, making it one of the largest public issues in Indian capital market history. The company has fixed the price band at Rs 552-577 per share. The IPO consists of a fresh issue of Rs 24,000 crore and an offer for sale (OFS) of Rs 4,000 crore by existing shareholders.
The proceeds from the fresh issue will be utilized to meet the company’s capital expenditure requirements, repay debts, and fund strategic initiatives. Hyundai Motor India plans to utilize Rs 15,400 crore for capital expenditure, Rs 6,300 crore for debt repayment, and Rs 2,300 crore for general corporate purposes.