India's second largest car manufacturing company Hyundai Motor India Ltd's Rs 27,870 crore mega IPO closed on 17 October with 2.4 times oversubscription. Hyundai IPO received applications for 23.63 crore shares against 9.97 crore shares.

Low demand from retail investors - 3 major reasons
Hyundai Motor India's IPO, which has been making headlines in the market for a long time, is the country's largest IPO so far. Hyundai's IPO was successful due to qualified institutional buyers (QIB). They secured 697 percent of their allotted shares. Analysts said that the demand from retail investors for the IPO remained low as there were concerns about high valuation, decline in the gray market premium of shares and weak demand in the auto sector during the festive season. Price band Rs 1,865 to Rs 1,960 per equity share The company fixed the price band at Rs 1,865 to Rs 1,960 per equity share. About 50 percent of the IPO was reserved for qualified institutional buyers (QIB), 15 percent for non-institutional investors (NII) and 35 percent for retail investors. Investors could bid for a minimum of 7 shares (one lot) and in multiples of 7 thereafter. South Korea's Hyundai Motor Company will get $3.3 billion or Rs 27,870 crore from the IPO. Hyundai Motor India is the second largest car manufacturing company in the country. It has a share of about 15 percent in the Indian automobile market. Apart from this, it is also the second largest exporter of passenger vehicles and its domestic market share is 14.6%. This is the first time since 2003 that an auto manufacturer has brought its IPO. During that time Maruti Suzuki went public.