Hyundai IPO Listing: The initial public offering (IPO) of Hyundai Motor India Ltd. which is India’s biggest IPO so far, saw a tepid demand from retail investors, but managed to sail through at the end of its bidding period. As the Hyundai IPO allotment has been finalised, investors now focus on share listing tomorrow.
Hyundai Motor India IPO opened for subscription on October 15 and closed on October 17. The IPO allotment date was October 18 and the Hyundai IPO listing date is October 22.
The equity shares of Hyundai Motor India will be listed on both the stock exchanges, BSE and NSE.
Ahead of the share listing, applicants watch out for the trends in Hyundai IPO GMP today, or grey market premium today, to gauge the listing price.
Hyundai Motor India shares are showing a volatile trend in the grey market. After dropping to a negative figure last week, Hyundai IPO GMP today is in the range of ₹65 - 70 per share, according to stock market observers. This indicates that, in the grey market, Hyundai Motor India shares are trading higher by ₹70 than their issue price.
Considering the Hyundai Motor India IPO GMP today and the issue price, the estimated listing price of Hyundai Motor India shares would be in the range of ₹2,025 - 2,030 apiece, a modest premium of 3.5% to the IPO price of ₹1,960 per share.
“The current grey market premium (GMP) of around ₹67 (3.42%) suggests expectations of a flat to moderate listing. The IPO valuation seems fully priced, and since the issue is a complete offer for sale (OFS), the company will not receive any proceeds from the offer. While Hyundai Motor India holds a strong market position as the second-largest passenger vehicle company in India, and its strategic focus on SUVs is promising, the overall market sentiment and IPO size may limit listing gains,” said Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.
Nyati advises investors with a long-term outlook and the ability to navigate potential listing challenges may consider holding onto their investments post-listing for potential future growth.
“In conclusion, we anticipate a steady debut, and while immediate listing gains may be modest, Hyundai’s robust fundamentals make it an attractive long-term investment,” Nyati said.
The bidding for Hyundai Motor India IPO began on October 15, and closed on October 17. The allotment was finalized on Friday, October 18, and the Hyundai IPO listing date is October 22. Hyundai Motor India shares will be listed on BSE and NSE.
Hyundai IPO price band was set at ₹1,865 to ₹1,960 per share. At the upper-end of the price band, the company raised ₹27,870.16 crore from the IPO, making it India’s biggest IPO. The issue was entirely an offer for sale of 14.22 crore equity shares.
Hyundai IPO was subscribed 2.37 times in total as the issue received bids for 23.63 crore equity shares as against 9.97 crore shares on offer. Retail investors’ portion was booked 50%, while non-institutional investors (NIIs) category was subscribed 60%. The qualified institutional buyers (QIBs) portion saw a subscription of 6.97 times and the employee portion was subscribed 1.74 times.
Kotak Mahindra Capital Company, Citigroup Global Markets India, HSBC Securities & Capital Markets, JP Morgan India and Morgan Stanley India Company are the book running lead managers of the Hyundai IPO, while Kfin Technologies is the IPO registrar.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
