Hyundai Motor India IPO Becomes Largest in Indian History, Fully Subscribed by 2.37x Amid Strong QIB Demand

Hyundai Motor India’s ₹27,870 crore IPO has set a new record as the biggest IPO in India, surpassing the ₹21,008 crore IPO of LIC. After a slow start, the IPO was fully subscribed by 2.37x by the final day, thanks to strong interest from Qualified Institutional Buyers (QIBs), whose reserved portion was oversubscribed by 6.97x. However, other investor segments like retail individual investors (RIIs) and non-institutional investors (NIIs) showed weaker interest, with subscriptions at 50% and 60% of their respective reserved sizes.

Let’s compare Hyundai’s IPO performance with other top IPOs in India:

1. Reliance Power (₹11,563 crore): This IPO during the global financial crisis was oversubscribed a staggering 73.04x, making it one of the most sought-after IPOs at the time. However, after its initial premium listing, the stock plummeted and has since struggled, now trading below ₹50, a far cry from its issue price of ₹450.
2. Coal India (₹15,199 crore): The coal giant’s IPO was oversubscribed 15.28x and listed at a premium of 17.44%. It had a strong post-listing performance, and its stock price has risen over time, currently trading above ₹490, with a market cap of over ₹3 lakh crore.
3. LIC (₹21,008 crore): India’s largest insurance company saw its IPO oversubscribed by 2.95x. However, it debuted at a discount of 8.61%, closing its listing day with further losses. LIC’s stock has seen a modest recovery since then, up nearly 14% from its issue price, but it remains below its listing price.
4. Paytm (₹18,300 crore): The fintech giant’s IPO was oversubscribed by 1.89x but listed at a discount of 9.07%. Paytm’s stock has had a challenging journey, falling more than 50% from its IPO price, although it has seen some recovery recently, trading around ₹700.

While Hyundai’s IPO performed well, driven primarily by institutional demand, it didn’t match the extraordinary oversubscription rates seen in the IPOs of Coal India or Reliance Power. However, given Hyundai’s strong brand, leadership in the SUV market, and solid institutional backing, its long-term market performance remains a point of interest, with a listing set for October 22.

Disclaimer:
The information provided here is for general informational purposes only and should not be considered financial advice. Investment in IPOs and the stock market involves risk, including the potential loss of capital. The past performance of IPOs is not indicative of future results. Before making any investment decision, you should conduct your own research, consult with a certified financial advisor, and carefully consider your financial situation, investment objectives, and risk tolerance. The performance of stocks and IPOs may vary based on market conditions and other external factors.