Hyundai Motor India IPO Listing: Hyundai Motor India Ltd debuted on the Indian stock market today, October 22. Shares listed at Rs 1,931 on Tuesday following a $3.3 billion initial public offering, marking the largest IPO in South Asia’s history.
The offering valued the Indian subsidiary of South Korea’s Hyundai Motor Co. at approximately Rs 19 billion. As part of the deal, the parent company sold a 17.5% stake in India’s second-largest car manufacturer.
Hyundai Motor India IPO GMP Today
Shivani Nyati, Head of Wealth, Swastika Investmart, said, “Hyundai Motor India Limited’s IPO received a decent subscription of 2.3 times, with a full subscription achieved on the last day. The current grey market premium (GMP) of Rs 67 (3.42%) suggests expectations of a flat to moderate listing. The IPO valuation seems fully priced, and since the issue is a complete OFS, the company will not receive any proceeds from the offer.”
The Ola Moment
Ola Electric Mobility Ltd made a flat debut on the stock market in August, with its shares listing at Rs 75.99 on the BSE, just below the IPO issue price of Rs 76. However, the stock later gained momentum, closing the day with a 20% rise, finishing at Rs 91.18 per share on the BSE.
‘IPO Size May Limit Listing Gains’
Nyati added that while Hyundai Motor India holds a strong market position as the second-largest passenger vehicle company in India, and its strategic focus on SUVs is promising, the overall market sentiment and IPO size may limit listing gains.
“Investors with a long-term outlook and the ability to navigate potential listing challenges may 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,” Nyati noted.
Master Capital Services noted that on October 21, the company’s shares at pre-listing were trading at a grey market premium of Rs 75 which is 3.8% higher than its original price band. This means that the shares might list at Rs.2035 on 22nd Oct.
“Despite some concerns regarding short-term listing gains due to subdued grey market premium, the company offers steady growth prospects amid industry tailwinds, robust financials and healthy SUV product demand. Hyundai’s leadership in India’s passenger vehicle market, along with its strategic focus on electric vehicles makes a compelling investment for long-term investors.”
Hyundai IPO GMP Trend
The GMP was minus Rs 32 on Friday, October 18, which indicated a negative listing.
The GMP is based on market sentiments and keeps changing.
The GMP of the Hyundai Motor India IPO has been falling consistently from Rs 175 on October 9 to just Rs 5 on the final day of bidding on Wednesday. However, a day before listing on Monday, it has sharply recovered and is now showing a GMP of Rs 95.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Hyundai Motor India IPO details
The Hyundai Motor India IPO, which was opened for public subscription between October 15 and October 17, received a 2.37 times subscription. Its retail (with 0.50 times subscription) and non-institutional investor (0.60 times) quotas remained oversubscribed. However, the QIB category received the most subscriptions (6.97 times) pushing the overall subscription numbers.
The Rs 27,870.2-crore IPO, which is a complete offer-for-sale (OFS) where the company’s South Korean parent will be diluting some of the stake, received overall bids for 23,63,26,818 shares as against the 9,97,69,810 shares on offer.
The Hyundai Motor India IPO is India’s biggest IPO comfortably surpassing LIC’s Rs 21,000-crore IPO, which was until now the biggest IPO in the country’s history.
The price band of the much-awaited IPO was fixed in the range of Rs 1,865 to Rs 1,960 per share.
