Hyundai Motor India Ltd. is set to make history with the largest IPO in India, scheduled for listing on October 22, 2024, on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The IPO, which opened for bidding from October 15 to October 17, was priced between ₹1,865 and ₹1,960 per share. It raised a record ₹27,870.16 crore, surpassing the previous high set by LIC in 2022. The IPO consisted entirely of an offer for sale (OFS) with 14.22 crore shares on offer.
Despite a sluggish response from retail investors, the IPO saw decent overall demand and closed successfully. It was subscribed 2.37 times, with bids for 23.63 crore shares against 9.97 crore shares available. Institutional investors showed significant interest, with their category subscribed 6.97 times. Non-institutional investors subscribed to 60% of their allotted shares, while retail investors subscribed to only 50%. The employee portion saw 1.74 times subscription.
The grey market premium (GMP), which had earlier dipped into negative territory, has turned positive, currently hovering between ₹65-70 per share. This suggests that Hyundai Motor India shares could list at around ₹2,025 to ₹2,030 apiece, reflecting a modest 3.5% premium over the issue price.
Although retail participation was weaker than expected, the strong demand from institutional buyers highlights confidence in Hyundai Motor India’s long-term growth potential. The IPO was led by major financial institutions including Kotak Mahindra Capital, Citigroup, HSBC, JP Morgan, and Morgan Stanley. KFin Technologies acted as the issue registrar.
With the listing just around the corner, all eyes are on the stock’s debut, particularly given the positive GMP and mixed market sentiment.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered financial advice. Investing in stocks involves risks, and past performance is not indicative of future results. Readers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions. The authors and publishers of this content do not accept any liability for losses or damages incurred as a result of reliance on this information.
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