The IPO of auto sector giant Hyundai India has opened from today i.e. 15th October. Hyundai Motors India is going to launch the country’s biggest ever IPO. And for these investors, it can be subscribed today i.e. from October 15 to October 17. Earlier, the record of the largest IPO was held by LIC, which had brought an issue of RS 20,557 crore. The issue size of Hyundai is RS 27,856 crore.
However, so far this IPO has not had a good track record of returns compared to IPOs with larger issue sizes. So far, 5 out of 6 mega IPOs worth at least ₹10,000 crore have had negative listings. Not only this, those who were going to invest money in this IPO, now those investors did not sell the stock in the hope of a rise, they are also now in loss.
Hyundai IPO Price Band
Investors will be able to bid in the IPO of Hyundai Motor India Limited till October 17. The price band of Hyundai’s IPO is RS 1,865 to RS 1,960 per equity share. Its face value will be RS 10. Investors can apply for a minimum of 1 lot i.e. a minimum of seven shares and then in multiples thereof. This means that retail investors will have to invest at least RS 13,720. Hyundai’s shares will be listed on (BSE) and (NSE) on October 22.
Hyundai IPO Subscribe
- The allotment for retail investors was subscribed 16%, while the portion reserved for non-institutional investors (NIIs) was subscribed 7%.
- The allotment for employees was booked 43%. However, no bids have been received yet for the quota earmarked for Qualified Institutional Bidders (QIBs).
- According to market experts, the valuation of this IPO looks quite expensive. This IPO should have been a little cheaper.
- The company is selling shares through OFS, which means that the money from its IPO will go to the promoters and will not be spent on the company’s growth and other things.
- At the same time, there is not much enthusiasm among the people about the IPO of auto sectors, whenever the IPO of auto sectors comes, investors place less bets. In such a situation, it is also believed that the reason is that investors are not showing much response to this.
Hyundai Motor India IPO GMP
Hyundai’s IPO is the first by any carmaker since 2003. This is because the gray market premium (GMP) for Hyundai Motor India has been continuously falling since the official announcement of the issue. The GMP of Hyundai’s IPO was initially around RS 1200, last heard that the company was commanding a premium of RS 30 in the unofficial market, Which indicates listing estimate of just 1-2% for investors. Earlier GMP was 45. If compared with the last week of September, Hyundai’s IPO has crashed by more than 90 percent.
Hyundai Motor 2nd Largest Car Company
This IPO is the first initial public offering of an automaker company in India in 20 years. Earlier, Maruti Suzuki’s IPO came in 2003. Hyundai is the second largest carmaker in the country after Maruti Suzuki India.
Hyundai Motor India is going to be the fourth largest company to be listed in the stock market. It is going to be the fourth largest automobile company after Maruti-Suzuki, Tata Motors, Mahindra & Mahindra. Hyundai Motor India is the second largest car company in the country after Maruti.
