BLACKROCK and Singaporean sovereign wealth fund GIC are among those that have made bids to buy stock in Hyundai Motor India’s US$3.3 billion initial public offering (IPO), according to sources familiar with the matter.
The record-breaking IPO in Mumbai is also attracting other local and international institutional investors, the sources said, asking not to be identified as the information is not public.
The so-called anchor book for the IPO, which is set to be the biggest ever in India, has been fully allocated, with half going to domestic institutions and the other half to international investors, the sources said. The anchor investor portion consists of as many as 42.4 million shares, according to the prospectus.
Representatives for Hyundai, BlackRock and GIC declined to comment.
The price range for the IPO of Hyundai Motor’s India unit was set at 1,865 rupees to 1,960 rupees a share on Wednesday (Oct 9), with the parent selling as many as 142.2 million shares, or a 17.5 per cent stake. At the top end of the range, Hyundai Motor India is valued at about US$19 billion.
The listing of India’s second-largest carmaker by sales is set to break the record set by Life Insurance Corp of India, which raised US$2.7 billion in 2022. It would also be one of Asia’s biggest IPOs in recent years.
Investor enthusiasm for India’s growth and lofty valuations has encouraged a record number of companies to go public, making the nation the world’s busiest IPO market. More than US$9 billion has been raised through over 250 IPOs this year, and other large listings are in the pipeline, including Indian food-delivery platform Swiggy.
The main books for Hyundai Motor India’s IPO open next week and the shares are scheduled to start trading on Oct 22. BLOOMBERG
