The Hyundai Motor India IPO (Initial Public Offering) has set its price band between ₹1,865 and ₹1,960 per equity share, with each share having a face value of ₹10. This much-anticipated IPO is scheduled to open for subscription on Tuesday, October 15, 2024, and will close on Thursday, October 17, 2024. Before the public subscription, the allocation to anchor investors will take place on Monday, October 14.
Hyundai Motor India is offering a significant portion of shares for different categories of investors. The company has reserved no more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), while non-institutional investors (NII) have been allocated not less than 15%. Retail investors will have access to at least 35% of the shares. Hyundai has also reserved 778,400 equity shares for its employees, with a special discount of ₹186 per share for eligible employees participating in this reservation.
Important Dates for Hyundai Motor India IPO
- Subscription Dates: October 15-17, 2024
- Anchor Investors Allocation: October 14, 2024
- Basis of Allotment: October 18, 2024
- Refund Initiation and Shares Credited: October 21, 2024
- Listing Date: October 22, 2024 (on BSE and NSE)
As of today, Hyundai Motor India’s IPO has a Grey Market Premium (GMP) of ₹147, according to the data from investorgain.com. GMP refers to the price at which shares are traded unofficially before being listed on the stock exchanges. The current premium suggests that the Hyundai Motor India share price could be listed at around ₹2,107 per share, which is approximately 7.5% higher than the IPO’s upper price band of ₹1,960. This indicates that the IPO is receiving strong interest from investors in the grey market, reflecting their willingness to pay more than the issue price.
The Hyundai Motor India IPO is entirely an offer-for-sale (OFS) by the promoter, Hyundai Motor Company. In this OFS, the promoter will sell around 14.2 crore equity shares, as stated in the company’s Red Herring Prospectus (RHP). Since there is no fresh issue of shares in this IPO, all proceeds from the offer will go directly to the promoter, and the company will not raise any new capital through the public offer.
Hyundai Motor India, part of the globally renowned Hyundai Motor Group, is one of the top auto original equipment manufacturers (OEMs) in the world. According to the CRISIL report, Hyundai ranked third globally in passenger vehicle sales in 2023. In India, the company has consistently been the second-largest OEM in the passenger vehicle segment since 2009, based on domestic sales.
Hyundai is well-known for producing reliable, safe, and technologically advanced vehicles. The company has built a strong reputation in India for its innovative and feature-packed passenger cars that appeal to a wide range of consumers.
The Hyundai Motor India IPO has attracted a lot of attention due to the company’s strong market presence and the growing demand in the grey market. With a price band of ₹1,865 to ₹1,960 per share, a special discount for employees, and a significant GMP of ₹147, many investors are eyeing this IPO for potential returns. Those looking to invest in a trusted auto brand with a proven track record should keep an eye on Hyundai Motor India as it approaches its listing date on October 22, 2024. However, it’s always wise to conduct thorough research and understand the risks before making any investment decision.
