Hyundai Motor India Ltd (HMIL) is set to list its shares on the BSE and NSE on October 22, following a strong 237% subscription for its Rs 27,870 crore Initial Public Offering (IPO). While the IPO saw limited interest from retail investors, it gained significant traction from Qualified Institutional Buyers (QIBs), with the QIB portion being oversubscribed nearly seven times (6.97x).
This IPO, the largest in India’s history, faced fluctuations in its grey market premium (GMP). After hitting a peak of Rs 570 in late September, the premium fell sharply into negative territory last week. However, just a day before listing, the shares rebounded, with the GMP rising to Rs 95, indicating a potential listing gain of around 5%.
The Hyundai India IPO was priced between Rs 1865 and Rs 1960 per share. Interest among retail investors remained low to a great extent, partly due to concerns over high valuations, the drop in GMP, and weak demand in the auto sector during the festive period.
Despite these odds, Hyundai Motor India is confident and expects the listing to increase its brand visibility and provide liquidity for its shares. Hyundai Motor India began operations in 1996 and currently sells 13 models across different segments in the Indian market.
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Source: Moneycontrol
News Desk
