Hyundai raises Rs 8,315 crore from anchor investors

MUMBAI: Hyundai Motor India has raised Rs 8,315 crore, about 30% of the nearly Rs 27,900 crore targeted through its initial public offering, from 225 anchor investors led by Singapore govt entities and various funds.
The IPO, which is the largest in the history of Indian capital markets, will open for subscription on Tuesday.
Govt of Singapore is the top investor, picking up 4.9% of the issue, with its central bank, the Monetary Authority of Singapore, picking up an additional 0.8%.Other top investors include funds managed by Fidelity Group (4.5%), SBI Group (4.5%), HDFC Group (4.2%), ICICI Group (4.1%), and Nippon Group (3.1%).
The company said that it has finalised the issue of 4.2 crore shares to the anchor investors at a price of Rs 1,960 per share, which includes a premium of Rs 1,950 per share.
According to Sebi rules, if the offer price discovered through the book-building process is higher than the anchor investor allocation price, anchor investors will be required to pay the difference.
Hyundai Motor India’s Korean parent is selling a 17.5% stake through an offer for sale. The proceeds of the IPO will go to the parent. The current pricing values the company at close to Rs 1.6 lakh crore, which is the same as the market cap of HDFC Life or Pidilite Industries. Maruti Suzuki has a market cap of Rs 3.9 lakh crore. Hyundai Motor Corporation has a market cap equivalent to Rs 3.9 lakh crore.
Until now, the largest IPO was that of LIC, worth Rs 21,000 crore. Hyundai is the second-largest player in the passenger car segment in India. It has also been the largest exporter of passenger vehicles from India. Since its entry into the country in 1998, the company has sold nearly 1.2 crore cars locally and abroad.
Hyundai India is among the top three in terms of global sales for the group and contributes 18.2% of the company’s sales.
The sensex on Monday jumped nearly 592 points while Nifty reclaimed the 25,000 level following gains in IT and banking shares amid a firm trend in global markets, agencies reported. The sensex jumped 0.7% to close at 81,973. During the day, it surged 691 points to hit a high of 82,072. The Nifty rose 164 points or 0.7% to settle at 25,128.