Hyundai’s IPO met with a lackluster response
Hyundai Motor India Limited has just launched the largest IPO in the history of India. But the market response to this IPO is very slow. That is why the subscription of the IPO remained very low even on the second day after its opening, whereas recently when the Bajaj Housing Finance IPO happened, people had invested in it enthusiastically.
Hyundai Motor India is the second largest automobile company in the country. Hyundai Motor of South Korea is its parent company and in this IPO the parent company itself is selling part of its stake. In this way, this IPO is completely an offer for sale. In this case, the Indian company will not get money from the IPO to expand its business.
Only 42 percent subscribed
According to NSE data, Hyundai Motor India’s initial public offering was only 42 per cent subscribed on the second day on Wednesday. Considering this is the country’s biggest IPO so far. Its size is around Rs 27,870 crore. Till the second day, bids have only been received for 4,17,21,442 shares, as against 9,97,69,810 shares put up for sale by the company. Previously, only one company, Life Insurance Corporation of India (LIC), had launched a larger IPO in the country. Its size was 21,000 crores.
read this too
How much was the subscription in which category?
QIB category shares have been 58 per cent subscribed in Hyundai Motor India’s initial public offering. While in the retail investor category the subscription has been 38 percent. In the non-institutional category, the IPO has been subscribed only 26 per cent. Hyundai Motor India Limited had raised Rs 8,315 crore from anchor investors on Monday ahead of the IPO opening.
The price band for Hyundai’s IPO has been set at Rs 1,865-1,960 per share. The company’s initial public offering will close on Thursday. In this IPO, parent company Hyundai Motor has put up for sale a total of 14,21,94,700 shares. In this case, no new shares have been issued. Since Maruti Suzuki’s IPO in 2003, this is the first time in the last two decades that an automobile company has launched its IPO.
