21 Mutual Funds Bet Big In India’s Biggest IPO: Grey Market Premium Of Hyundai IPO Drops

Global auto manufacturer Hyundai Motor Company’s Indian subsidiary, Hyundai Motor India, saw significant demand from domestic mutual funds and 83 mutual fund schemes, which invested in the scrip during its initial public offering (IPO) debut in the Indian stock market. As much as 34.42 per cent of allotment to anchor investors were bought by domestic mutual funds; the total anchor investor allotment being Rs 8,315.29 crore.

The IPO aims to raise Rs 27,870 crore, making it the largest in India. The IPO application window started today, and currently, the grey market premium (GMP) is at Rs 45, almost 2 per cent premium over the upper end of the price band set at Rs 1,960. This marks a decline from a GMP of Rs 570 two weeks ago.

Fund Houses Betting Big On Hyundai IPO

Kotak Flexi Cap Fund, which acquired a little more than 1 million shares, and ICICI Prudential Bluechip Fund, which bought 849,000 shares, were some of the largest buyers. SBI Magnum Global Fund and SBI Automotive Opportunities Fund also bought over 800,000 shares.

ICICI Prudential Mutual Fund and HDFC Asset Management Company acquired shares worth Rs 366.5 crore each in Hyundai through various schemes. 

Almost all domestic asset management companies, such as SBI Mutual Fund, Nippon Life India, Kotak Mutual Fund, Axis Mutual Fund, Aditya Birla Sun Life Trustee, UTI Mutual Fund, Mirae Asset, Franklin India, Motilal Oswal Mutual Fund, Ashoka Whiteoak, Invesco India, and Bank of India Mutual Fund participated in the IPO.

Here are top 10 investments in Hyundai India from mutual fund schemes

Many insurance companies also made sizable investments in Hyundai’s IPO. SBI Life Insurance Company, HDFC Life Insurance Company, SBI General Insurance, Canara HSBC Life Insurance, ICICI Lombard General Insurance, Bajaj Allianz General Insurance, and Max Life Insurance Company, made significant investments in the IPO.