Hyundai Motor India IPO Anchor Allocation at 29.83%

Hyundai Motor India IPO saw a positive anchor allocation response, with 29.83% of the total IPO size subscribed by anchor investors. Out of 142,194,700 shares on offer, anchors picked up 42,424,890 shares, demonstrating strong market confidence. The anchor allocation details were reported to the stock exchanges on 14th October 2024, just ahead of the IPO opening on 15th October 2024.

The book-built issue of ₹27,870.16 crores is entirely an offer for sale of 14.22 crore shares. The price band is set at ₹1865 to ₹1960 per share, with a face value of ₹10 per share. This includes a share premium of ₹1950 per share at the upper end of the price band.

The anchor allocation process, which took place on 14th October 2024, saw strong participation from institutional investors. The entire anchor allocation was made at the upper end of the price band, ₹1960 per share, indicating robust demand and confidence in the company's prospects.

After the anchor allocation, the overall allocation of the Hyundai Motor India IPO looks as follows:

Notably, the 42,424,890 shares allocated to anchor investors were reduced from the original Qualified Institutional Buyers (QIB) quota. As a result, the QIB quota has been reduced from 50% before the anchor allocation to 20.17% after the allocation. This adjustment ensures that the overall allocation to QIBs, including the anchor portion, remains within regulatory limits.

The lock-in period for anchor investors is an important aspect of the allocation. For Hyundai Motor India Limited IPO, the lock-in details are as follows:

• Lock-in Period (50% Shares): 17th November 2024 
• Lock-in Period (Remaining Shares): 16th January 2025

This lock-in period ensures that anchor investors maintain their investments for a specified duration, stabilising the stock price after listing.

Anchor Investors in Hyundai Motor India IPO

Anchor investors are typically large institutional investors allotted shares in an IPO before it opens to the public. The anchor allocation process is a crucial part of the IPO, as it helps in price discovery and builds confidence among retail investors. The strong response from anchor investors often sets a positive tone for the public issue and can influence the overall subscription levels.

On 14th October 2024, Hyundai Motor India IPO completed the bidding for its anchor allocation. There was a robust response as the anchor investors participated in the book-building process. A total of 42,424,890 shares were allotted to 225 anchor investors. The allocation was done at the upper IPO price band of ₹1960 per share, resulting in an overall anchor allocation of ₹8,315.28 crore. The anchors have already absorbed 29.83% of the total issue size of ₹27,870.16 crore, indicating strong institutional demand.

Out of the total allocation of 42,424,890 Equity Shares to the Anchor Investors, 14,600,732 Equity Shares (i.e., 34.42% of the total allocation to Anchor Investors) were allocated to 21 domestic mutual funds through a total of 83 schemes.

Key IPO Details:

• IPO Size: ₹27,870.16 crores
• Shares Allocated to Anchors: 42,424,890
• Anchor Subscription Percentage: 29.83%
• Listing Date: 22nd October 2024
• IPO Opening Date: 15th October 2024

Read more about Hyundai Motor India IPO

About Hyundai Motor India and How to Apply for Hyundai Motor India IPO

Incorporated in May 1996, Hyundai Motor India Limited is a part of the Hyundai Motor Group, which is the third largest auto original equipment manufacturer ("OEM") in the world based on passenger vehicle sales. The company manufactures and sells four-wheeler passenger vehicles, including models such as sedans, hatchbacks, SUVs, and electric vehicles (EVs). As of 31st March 2024, the company has sold nearly 12 million passenger vehicles in India and through exports.

The company's manufacturing plant is situated near Chennai and can produce its full range of vehicle models. Hyundai Motor India exports its products to Africa, the Middle East, Bangladesh, Nepal, Bhutan, and Sri Lanka.

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