The Hyundai Motor India Ltd. IPO, India’s biggest IPO to date, is set to list its shares tomorrow. While the IPO saw lukewarm interest from retail investors, it still managed to complete its bidding process successfully. With the allotment finalized, all eyes are now on the listing.
The Hyundai IPO opened for subscription from October 15 to October 17, with the allotment finalized on October 18. The shares are expected to list on October 22, on both BSE and NSE.
Grey Market Premium (GMP)
In the grey market, Hyundai shares have shown some volatility. After slipping into negative territory last week, the grey market premium (GMP) is now in the range of ₹65 to ₹70 per share, meaning Hyundai shares are trading ₹70 higher than the issue price. Based on this, the estimated listing price of the shares could be between ₹2,025 and ₹2,030, representing a modest premium of 3.5% over the IPO price of ₹1,960.
According to market experts, this GMP suggests that Hyundai shares are expected to have a flat or slightly positive debut. The IPO valuation appears to be on the higher side, and since the entire issue is an offer for sale (OFS), Hyundai Motor India will not receive any funds from the IPO itself.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., said that while Hyundai Motor India holds a solid market position as India’s second-largest passenger vehicle company, and its focus on SUVs is promising, the overall market sentiment and the large size of the IPO could limit the listing gains. She also noted that investors with a long-term view might want to hold onto their shares for future growth.
Hyundai IPO Details
The Hyundai Motor India IPO ran from October 15 to October 17, with the allotment done on October 18. The listing is scheduled for October 22 on BSE and NSE.
The price range for the IPO was set between ₹1,865 and ₹1,960 per share. At the upper end of the price band, Hyundai raised ₹27,870.16 crore, making it the largest IPO in India. The entire issue was an offer for sale, with 14.22 crore shares sold.
The IPO was subscribed 2.37 times overall, with 23.63 crore shares bid for compared to the 9.97 crore on offer. Retail investors subscribed to 50% of their allotted portion, non-institutional investors (NIIs) subscribed 60%, and qualified institutional buyers (QIBs) subscribed 6.97 times. The employee portion was subscribed 1.74 times.
The IPO was managed by Kotak Mahindra Capital Company, Citigroup Global Markets India, HSBC Securities & Capital Markets, JP Morgan India, and Morgan Stanley India, while Kfin Technologies acted as the registrar.
Hyundai’s long-term prospects remain strong, but investors may see only modest short-term gains upon listing.
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