Hyundai Motor India has successfully raised Rs 8,315 crore from 225 anchor investors just ahead of its upcoming initial public offering (IPO). The shares were allotted at Rs 1,960 each, the highest end of the price band, signaling strong investor interest.
Major global and domestic investors participated in the anchor round, including the Government of Singapore, Fidelity, Vanguard, BlackRock, ICICI Prudential Mutual Fund, and others. In total, 21 domestic mutual funds participated in the anchor offering through 83 different schemes.
The IPO is entirely an offer for sale (OFS) of 14.2 crore shares by Hyundai Motor Global, the parent company. As a result, all proceeds from the sale will go directly to the parent firm. However, Hyundai Motor India has indicated that the funds raised will be used for research, development, and innovative new products, despite the proceeds not remaining within the Indian arm of the business.
Hyundai Motor India is the country's second-largest carmaker, with a portfolio of 13 passenger vehicle models ranging from sedans and hatchbacks to SUVs. The company operates two manufacturing facilities in Chennai, which have a combined annual capacity of 8.24 lakh units. With the plants running at over 90 per cent capacity, Hyundai India aims to leverage its strong local manufacturing capabilities to become Hyundai Motor’s largest production base in Asia.
For the quarter ending June 2024, Hyundai Motor India reported revenues of Rs 17,344 crore, showing growth compared to Rs 16,624 crore in the same period the previous year. Of this, 76 per cent was derived from the domestic market, while exports accounted for 24 per cent.
The company’s net profit for the quarter stood at Rs 1,489.65 crore, up from Rs 1,329.19 crore in the previous year. The IPO will be managed by a consortium of financial institutions including Kotak Mahindra Capital, Citigroup Global, HSBC Securities, JP Morgan, and Morgan Stanley, with KFin Technologies serving as the registrar.
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