Hyundai IPO GMP Crashes Ahead of Listing! What Investors Should Know as Allotment Date Nears

Hyundai Motors’ Initial Public Offering (IPO), which opened for subscription from October 15 to 17, is scheduled for its listing on the Indian stock market on October 22. However, recent trends in the Grey Market Premium (GMP) indicate that the stock might see a flat debut.

The GMP for Hyundai Motors has fallen to ₹45, a modest 2.3% above the IPO price of ₹1,960 per share. This suggests the company’s shares could be listed at approximately ₹2,005, according to market experts. The highest GMP for Hyundai Motors IPO recorded was ₹570, while the lowest was ₹0, as analyzed by experts from investorgain.com.

Grey Market Premium reflects investor sentiment in the unlisted market and shows how much more investors are willing to pay over the issue price. While GMP can offer a glimpse of market expectations, it is not always a reliable predictor for the actual performance of a stock on its listing day. GMPs tend to fluctuate frequently and are influenced by a range of factors.

Hyundai Motors’ ₹27,870 crore IPO, the largest public issue in India so far, just about cleared its final bidding stages. The demand was mainly driven by non-institutional investors, while retail and non-institutional investor categories remained undersubscribed.

Hyundai Motors IPO Details

The IPO price range was set between ₹1,865 and ₹1,960 per share. It was an Offer for Sale (OFS) of 14.22 crore shares, with no fresh issue component. Half of the issue size was allocated to Qualified Institutional Buyers (QIBs), with 60% of that portion for anchor investors. Fifteen percent of the shares were reserved for non-institutional investors, while retail investors got 35%. Additionally, Hyundai Motors set aside 7,78,400 equity shares for its employees.

Despite the anticipation for the stock’s debut, the decline in the GMP ahead of the listing might indicate muted market enthusiasm. However, investor sentiment could shift once the stock officially begins trading.