Hyundai Motor India Ltd is all set to list its shares on the stock market today, October 22, 2024, after a lukewarm demand for its IPO. The shares will debut on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
The Hyundai IPO was open for subscription between October 15 and October 17, with the final allotment completed on October 18. Hyundai Motor India shares will be listed today and available for trading from 10:00 AM in a special pre-open session (SPOS).
Hyundai IPO Grey Market Premium (GMP) Today
In the grey market, Hyundai shares are trading at a premium of ₹65 to ₹70 above the issue price, suggesting a mild gain. This means Hyundai shares could list at around ₹2,025 to ₹2,030 per share, giving a modest 3.5% increase over the IPO price of ₹1,960.
Expert Opinions on Hyundai IPO Listing
Prashanth Tapse, Senior VP of Research at Mehta Equities, said that despite Hyundai’s strong position in the market, the IPO could see a flat or even negative start. He noted that the IPO faced low demand from retail and non-institutional investors due to concerns over high valuations and oversupply in the sector. Tapse advised investors who were allotted shares to hold on despite short-term challenges, as Hyundai has solid growth potential in the long run. Non-allottees should wait for a better price to invest.
Shivani Nyati, Head of Wealth at Swastika Investmart, shared a similar view, saying the current GMP shows expectations of a flat to moderate listing. She added that while Hyundai is the second-largest passenger vehicle company in India, the large IPO size and the fact that it is an offer-for-sale (OFS) may limit listing day gains. Nyati suggested long-term investors hold onto the stock for potential growth in the future.
Hyundai IPO Details
The Hyundai IPO, India’s biggest-ever, was priced between ₹1,865 and ₹1,960 per share. The company raised ₹27,870.16 crore through the IPO, with all the shares offered being sold by existing shareholders (OFS). The IPO was subscribed 2.37 times, with strong interest from qualified institutional buyers (QIBs), who subscribed 6.97 times the shares reserved for them. However, retail investors only subscribed to 50% of their portion, and non-institutional investors (NIIs) subscribed to 60%.
In conclusion, the Hyundai IPO is expected to have a steady debut with modest gains, but it remains a solid long-term investment opportunity due to Hyundai’s strong position in the Indian market.
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