Hyundai India's record IPO: institutions piled in, retail stayed away

Two and a half years after LIC, India got a new record. Hyundai Motor India, the local arm of South Korea's Hyundai Motor Company and the maker of the Creta and Venue, raised ₹27,870 crore in its IPO in October 2024.

How the deal was built

• Price band₹1,865 to ₹1,960 a share. Final price: ₹1,960.
• 100% OFSEvery one of the 14.22 crore shares sold came from the Korean parent. Hyundai India raised no new money.
• DatesOpen 15–17 October 2024. Listed on 22 October 2024.

That last point shaped the debate. In an offer for sale, the cash goes to the seller. Here, the seller was a foreign parent taking money out of a profitable Indian subsidiary, while keeping control of it.

Who wanted it

For two days, the IPO looked like it might struggle. By the end of day 2, it was only 42% subscribed. Then institutions arrived.

Qualified institutional buyers, which means mutual funds, insurers and foreign funds, bid for nearly 7 times their quota on the last day, and pulled the overall figure to 2.37 times. Retail investors never filled even half of their portion: 0.50 times.

That gap is the story of this IPO. Big funds were happy to own a large, profitable carmaker at a fixed price. Retail investors, who mostly buy IPOs hoping for a quick listing gain, saw a high price and little reason to expect one.

Listing, and after

On 22 October 2024, the shares opened at ₹1,934 on the NSE, 1.3% below the issue price, and ₹1,931 on the BSE. Two weeks later, on 4 November, they were at ₹1,814, about 7% below what IPO investors paid.

LIC vs Hyundai

• SimilarBoth were 100% offers for sale, both were priced at the top of the band, and both opened below their issue price.
• DifferentLIC's retail quota was nearly 2 times subscribed and its policyholders 6 times. Hyundai's retail quota was half empty: demand came almost entirely from institutions.

The questions worth asking before any mega-IPO

• Who gets the money?Fresh issue funds the company; an OFS pays the seller.
• What's left for the buyer?If the price already reflects years of growth, the listing pop that retail investors hope for may not come.
• Who's bidding?Subscription by category, updated daily on the exchanges, shows whether demand is broad or driven by one group.

The next record is already on the calendar: Jio Platforms has said it plans to raise up to ₹30,213 crore, with the IPO set to open on 21 October 2026, according to reports in early October. Terms may change in the final prospectus. Educational content only, not a recommendation on any IPO.