Mumbai: The initial public offering (IPO) of Hyundai Motor India Ltd (HMIL) received 42 per cent subscription on the second day of bidding on Wednesday.
This modest response came even as its grey market premium (GMP) remained subdued. It was trading at ₹30 according to IPO Watch against ₹45 per share on Tuesday.
Observers, however, feel that the issue will get fully subscribed when it closes on Thursday.
Data from the BSE showed that the ₹27,870-crore share sale got bids for 4.17 crore shares against 9.97 crore shares on offer.
The category for Qualified Institutional Buyers (QIBs) saw a subscription of 58 per cent, while the portion meant for retail investors received 38 per cent bids. The portion meant for non-institutional investors was subscribed 26 per cent.
On Monday, HMIL raised ₹8,315 crore from anchor investors. This is the largest IPO in the country and it comes at a price band of ₹1,865-1,960 per share.
The IPO is entirely an offer for sale (OFS) by promoter Hyundai Motor Company (HMC).
Since the public issue is completely OFS, HMIL, which is the second largest carmaker in India after Maruti Suzuki, will not receive any proceeds from the IPO.
HMIL stated that it expects the listing of the equity shares will enhance its visibility and brand image and provide liquidity and a public market for the shares.
At the upper end of the price band, the IPO size has been pegged at $3.3 billion, and the company’s market valuation at around ₹1.6 lakh crore (about $19 billion) post-issue.
