The initial public offering (IPO) of Hyundai Motor India Ltd., India’s largest IPO to date, faced lukewarm demand from retail investors but managed to close successfully at the end of its bidding period. With the IPO allotment finalized, investors now eagerly await the share listing set for tomorrow, October 22, on both BSE and NSE.
Subscription Timeline and Key Dates
The Hyundai Motor India IPO opened for subscription on October 15 and closed on October 17. The IPO allotment date was October 18. As the listing date approaches, investors are closely monitoring the grey market premium (GMP) to gauge potential listing prices.
Grey Market Performance and Predictions
Hyundai Motor India shares have shown a volatile trend in the grey market. After dipping to a negative figure last week, the GMP today ranges between ₹65 and ₹70 per share. This indicates that the shares are trading higher by ₹70 than their issue price. Considering the current GMP and the issue price, the estimated listing price of Hyundai Motor India shares is expected to be between ₹2,025 and ₹2,030 apiece, reflecting a modest premium of 3.5% over the IPO price of ₹1,960 per share.
Expert Opinions on IPO Valuation and Market Sentiment
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., suggests that the current GMP of around ₹67 (3.42%) points to a flat to moderate listing. She notes that the IPO valuation seems fully priced, and since the issue is a complete offer for sale (OFS), Hyundai Motor India will not receive any proceeds from the offer. Despite Hyundai Motor India’s strong market position as the second-largest passenger vehicle company in India and its strategic focus on SUVs, the overall market sentiment and IPO size may limit listing gains.
Investment Strategy and Future Outlook
Nyati advises investors with a long-term outlook to consider holding onto their investments post-listing for potential future growth. “We anticipate a steady debut, and while immediate listing gains may be modest, Hyundai’s robust fundamentals make it an attractive long-term investment,” she said.
IPO Subscription and Allotment Summary
The Hyundai Motor India IPO was subscribed 2.37 times in total, with bids for 23.63 crore equity shares against 9.97 crore shares on offer. Retail investors subscribed to 50% of their portion, while non-institutional investors (NIIs) subscribed to 60%. The qualified institutional buyers (QIBs) portion saw a subscription of 6.97 times, and the employee portion was subscribed 1.74 times.
Lead Managers and Registrar
Kotak Mahindra Capital Company, Citigroup Global Markets India, HSBC Securities & Capital Markets, JP Morgan India, and Morgan Stanley India Company are the book-running lead managers for the Hyundai IPO, while Kfin Technologies serves as the IPO registrar.
