GIC and BlackRock subscribe for $100 million stake in Hyundai Motor India

Singapore's Government Investment Corp (GIC) and U.S. investment firm BlackRock have become cornerstone investors in Hyundai Motor Co. 's India unit with a combined stake worth $77.3 million.

Reuters reported on Monday (Oct 14) that $999.4 million worth of shares in Hyundai Motor India's $3.3 billion initial public offering (IPO) have been subscribed by institutional investors.

Among institutional investors, investment firm Fidelity took a stake of $76.5 million, while $340 million was allocated to mutual funds (also called mutual funds) in India.

India's capital markets continue to attract attention from investors, with $9 billion raised so far this year, well above the $7.42 billion raised last year. Hyundai Motor India's initial public offering is the largest ever.

Parent company Hyundai Motor Group of South Korea will not be selling new shares in the initial public offering, but will instead sell a 17.5 percent stake in Hyundai Motor India. It is also the first time Hyundai Motor has been listed outside of South Korea. At Hyundai India's $19bn valuation, it would account for 40 per cent of the parent company's market capitalisation.

According to the official announcement, the listing price of Hyundai Motor India is between Rs 1,865 and Rs 1,960, and the company's shares will start trading on October 22.