Hyundai Motor India's record Rs 27,870 crore IPO fully subscribed

initial public offer of Hyundai Motor India Ltd, Indian arm of South Korean automaker Hyundai, got fully subscribed on third day of bidding on Thursday.

Rs 27,870 crore initial share sale got bids for 14,07,68,187 shares against 9,97,69,810 shares on offer, translating into 1.41 times subscription, as per NSE data till 13:21 hours.

quota for Qualified Institutional Buyers (QIBs) got 3.88 times subscription while portion meant for Retail Individual Investors (RIIs) received 44 per cent subscription. non-institutional investors part fetched 39 per cent subscription.

Hyundai Motor India Ltd (HMIL) on Monday raised Rs 8,315 crore from anchor investors.

This is largest IPO in country, surpassing LIC's initial share sale of Rs 21,000 crore.

IPO has a price band of Rs 1,865-1,960 per share.

IPO is entirely an offer for sale (OFS) of 14,21,94,700 equity shares by promoter Hyundai Motor Company (HMC), with no fresh issue component.

This is first initial share sale by an automaker in over two deces, following Japanese carmaker Maruti Suzuki 's listing in 2003.

Since public issue is completely an OFS, Hyundai Motor India Ltd, second largest carmaker in India after Maruti Suzuki , will not receive any proceeds from IPO .

HMIL stated that it expects that listing of equity shares will enhance its visibility and brand image, and provide liquidity and a public market for shares.

At upper end of price band, IPO size has been pegged at Rs 27,870 crore (USD 3.3 billion), and company's market valuation at around Rs 1.6 lakh crore (about USD 19 billion) post-issue.

HMIL commenced operations in India in 1996 and currently, sells 13 models across segments.

Kotak Mahindra Capital Company Ltd, Citigroup Global Markets India Private Ltd, HSBC Securities and Capital Markets (India) Private Ltd, J P Morgan India Private Ltd and Morgan Stanley India Company Private Ltd are book-running le managers to offer