Hyundai India IPO: Shares start trading at Rs 1,934, a discount of 1.3%

India’s second largest car maker Hyundai Motor India made its debut on the stock exchanges on Tuesday as its equity shares started trading at a listing price of Rs 1,934 on the NSE. The listing price represents a 1.3% discount to the issue price of Rs 1,960.

This IPO has become the largest in the country to date, surpassing Life Insurance Corp’s Rs 21,000-crore IPO two years ago. This is also the first IPO by a carmaker in India in the two decades since Maruti Suzuki's listing in 2003.

The three-day IPO subscription saw tepid investor interest in the first two days but a strong demand from Qualified Institutional Buyers (QIBs) on the final day ensured the successful completion. The issue drew subscriptions 2.37 times the number of shares on offer.

The price band of the IPO was set in the range of Rs 1,865 to Rs 1,960 per share. At the upper end of the price band, the company raised around Rs 27,870 crore in the issue, making it India’s largest IPO to date.

Hyundai India’s IPO is a pure offer for sale. None of the proceeds of the issue will come to the Indian unit. The South Korean parent company Hyundai Motor Company diluted 17.5% stake in its wholly-owned India unit.

The automaker raised Rs 8,315.28 crore from 225 anchor investors last week. It finalized the allocation of 4.2 crore equity shares to anchor investors for Rs 1,960 per share.

Kotak Mahindra, Citi Group, HSBC Securities, JP Morgan and Morgan Stanley are the lead book-running managers for the IPO.

Ola Electric was the recent automaker to list its shares on bourses. On the first day of trading, Ola Electric shares soared 20% over the IPO allotment price and got locked in the upper circuit.