Hyundai Motors initial public offering (IPO), which opened for subscription on October 15 and closed on October 17, is all set to make its debut on the Indian stock market on October 22.
However, the Grey Market Premium (GMP) for Hyundai Motors indicates a downward trend ahead of its listing next Tuesday, potentially leading to a flat debut.
According to investorgain, Hyundai Motors is currently trading at a premium of ₹45 in the grey market, which is just 2.3 per cent higher than the IPO price of ₹1960.
This means that the estimated listing price of Hyundai Motors is likely to be ₹2,005, according to market observers.
Hyundai Motors' GMP was +63 on the first day of its IPO, but it declined during the subscription period. By the last day of subscriptions on October 17, the GMP had dropped significantly, hitting -32 in the grey market, as per data by investorgain.
However, GMP of Hyundai Motors climbed to +5 on the allotment day, October 18.
The lowest GMP recorded ever is Re 0, and the highest GMP of all time for any IPO is ₹570, as per the analysis by experts at investorgain.com. 'Grey market premium' indicates investors' readiness to pay more than the issue price.
It is important to note, however, that grey market premiums are simply indicators of how the company's shares are valued in the unlisted market and can fluctuate quickly.
The ₹27,870 crore IPO, India's largest public offering to date, narrowly passed the final stages of the bidding process, driven primarily by strong demand from non-institutional investors. The retail and non-institutional investor segments of the issue were both undersubscribed.
Hyundai Motor India's IPO, price was fixed between ₹1,865 and ₹1,960 per share. The ₹27,870.16 crore offering was an offer for sale (OFS) of 14.22 crore shares, with no fresh issue component.
Half of the net public issue size (excluding the portion reserved for employees) is allocated to Qualified Institutional Buyers (QIBs), with up to 60 per cent of that portion available for allocation to anchor investors. Additionally, 15 per cent of the shares are set aside for non-institutional investors, while 35 per cent are reserved for retail investors. The company has also allocated up to 7,78,400 equity shares specifically for its employees.
