Hyundai India Raises ₹8,315 Crore from Anchor Investors Ahead of IPO Launch

Hyundai Motor India has successfully raised ₹8,315 crore from 225 anchor investors as it prepares for its IPO opening on Tuesday. The shares were allocated at ₹1,960 each, the highest price in the range set for the IPO.

Among the anchor investors, about 21 domestic mutual funds participated through a total of 83 schemes. Notable investors included the Government of Singapore, New World Fund Inc, Fidelity, ICICI Pru MF, Vanguard, Blackrock, Axis MF, JP Morgan, ADIA, Morgan Stanley, BofA Securities, and Citigroup.

This IPO is entirely an offer for sale (OFS) of 14.2 crore shares, which will be sold by Hyundai’s parent company, Hyundai Motor Global. Since it’s an OFS, all proceeds from the IPO will go to the parent company. The management stated that the funds would be used for research and development and new innovative projects.

Hyundai has set a price range of ₹1,865 to ₹1,960 per share, allowing investors to bid for 7 shares in one lot. The company is the second-largest car manufacturer in India, offering 13 passenger vehicle models, including sedans, hatchbacks, and SUVs. Hyundai aims to strengthen its position as the largest production base for Hyundai Motor in Asia, leveraging its strong local manufacturing capabilities. The company has two production facilities in Chennai with a combined capacity of 8.24 lakh units per year, currently operating at over 90% capacity.

For the quarter ending June 2024, Hyundai Motor India reported a revenue of ₹17,344 crore, up from ₹16,624 crore in the same quarter last year. Of this revenue, 76% came from the domestic market, while 24% was from exports. The company’s net profit for the quarter was ₹1,489.65 crore, compared to ₹1,329.19 crore in the previous year.

Kotak Mahindra Capital, Citigroup Global, HSBC Securities, JP Morgan, and Morgan Stanley are the lead managers for the IPO, while KFin Technologies is handling the registration for the offer.