Hyundai Motor India’s Initial Public Offering (IPO) has recently launched, attracting attention from both retail and institutional investors. The public issue opened on October 15, 2024, and will remain available for subscription until October 17, 2024. This IPO has stirred a lot of excitement in the market due to Hyundai’s strong presence in the Indian automobile industry.
The company has set a price band of ₹1865 to ₹1960 per share. This means that investors can place bids for shares within this price range. The IPO aims to raise ₹27,870.16 crore. Importantly, this offering is an Offer for Sale (OFS), meaning the proceeds will not go to the company itself but to the selling shareholders. Hyundai is not raising new capital through this IPO, but existing shareholders are selling their stakes.
One of the interesting aspects of any IPO is the Grey Market Premium (GMP). This refers to the premium at which shares are traded unofficially before they are listed on the stock exchange. According to market observers, Hyundai Motor India shares are trading at a ₹65 premium in the grey market today. This indicates positive demand, though the GMP is just an estimate and may change by the listing date.
As of the second day of subscription, the IPO has been subscribed 23%, according to the BSE (Bombay Stock Exchange). This means that bids have been placed for 2.27 crore shares against the 9.97 crore shares available. Retail investors have subscribed to 34% of their portion, non-institutional investors (NIIs) have subscribed 18%, and qualified institutional buyers (QIBs) have subscribed 5%. The employee portion has been 1.14 times subscribed. On the first day, the IPO saw an overall subscription of 0.18 times.
Some key dates to keep in mind include the IPO closing date on October 17, 2024, and the allotment date on October 18, 2024. The shares are expected to list on October 22, 2024, on both the BSE and NSE.
Investors interested in this IPO can place bids in lots, with each lot consisting of 7 shares. This structure allows both small retail investors and larger institutions to participate. Hyundai Motor India’s established brand, coupled with the growing demand for cars in India, makes this IPO appealing to many.
However, it’s important to consider a few points before investing. Since this is an Offer for Sale, the funds raised will go to existing shareholders and not the company itself. Investors should also look closely at the company’s valuation, market conditions, and the GMP, which reflects strong demand but is not a guaranteed indicator of future performance.
Hyundai Motor India’s IPO offers an exciting opportunity for investors. With a strong market presence, significant demand in the grey market, and solid subscription figures, the IPO is generating considerable buzz. However, potential investors should carefully assess their financial goals and risk tolerance before deciding to invest.
