The Hyundai Motor India Initial Public Offering (IPO) has been open for subscription since Tuesday, October 15. As of today, Thursday, October 17, it is the last day for investors to apply for the IPO. However, the demand from investors has been slower than expected, with the overall subscription rate currently at 0.42 times. Let’s break down the key details of this IPO and how it’s performing.
Price Band and IPO Details
The Hyundai Motor India IPO has been offered at a price range of ₹1,865 to ₹1,960 per share. This is the price investors must pay to get a single share. The company is aiming to raise ₹27,870.16 crore through this offer for sale (OFS), meaning that existing shareholders are selling their shares, and there will be no fresh shares issued.
One important factor for investors to watch is the Grey Market Premium (GMP). The GMP shows how much investors in the unofficial market are willing to pay above the IPO price. As of today, October 17, the GMP for Hyundai Motor India stands at ₹17. This suggests that the stock could list at around ₹1,977 per share when it debuts on the stock exchanges.
While a premium of ₹17 may sound positive, it’s much lower than the earlier GMP of ₹570 that was recorded during the early days of the IPO announcement. This drop in GMP indicates a decrease in excitement among grey market investors, and the stock may list at a small premium of 0.87% on its debut.
Subscription Status
By the morning of October 17, the IPO had been subscribed 0.43 times, meaning that investors have applied for only 43% of the total shares available. The retail portion of the IPO, which is usually of great interest to individual investors, has been subscribed 0.40 times. The Non-Institutional Investor (NII) portion, typically for high-net-worth individuals, has been subscribed 0.27 times, while the Qualified Institutional Buyers (QIBs) have shown more interest, with a 0.58 times subscription.
These figures suggest that demand for the Hyundai Motor India IPO has been relatively low, especially compared to other recent IPOs.
Key Dates for the IPO
The Hyundai Motor India IPO closes today, October 17, and after that, several important dates will follow:
- Share Allotment: The company is expected to finalize the share allotment on Friday, October 18. This is when investors will know if they were successful in getting shares.
- Demat Credit: For those who receive shares, they can expect the shares to be credited to their demat accounts by Monday, October 21.
- Refunds: For investors who do not get shares, the refund process will start on October 21 as well.
- Listing Date: Hyundai Motor India is expected to list on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on Tuesday, October 22.
The Hyundai Motor India IPO has faced a lukewarm response so far, with lower-than-expected demand and a declining grey market premium. Investors have until the end of today to apply for shares, and those who do get shares can expect them to be listed on the stock exchange by October 22. As always, it’s essential to carefully evaluate your risk tolerance and financial goals before making any investment decision.
