What will Hyundai’s IPO be like?
Hyundai Motor India’s recent IPO was the largest IPO in Indian history so far. This IPO of around Rs 27,870 crore has left behind the previous IPOs of Life Insurance Corporation of India (LIC) worth Rs 21,000 crore and Paytm (Paytm) worth Rs 18,300 crore. Despite this, when it closed on October 17, it did not receive as good of a market response as expected. In such a situation, people now fear that they will have to suffer losses on their stocks on the day of listing.
The listing of Hyundai Motor India shares on the stock market will take place on October 22. In such a situation, people fear that without considering the listing premium, the company’s shares will not have to suffer huge losses like those of LIC or Paytm. Hyundai Motor India’s IPO underwriting style also indicates something similar. Less than 50 percent were subscribed in the first two days. However, its IPO was subscribed 2.37 times in the last day.
What is the GMP of Hyundai stock?
Every time a company goes public, before the listing of its shares, a trend is formed regarding the demand for its shares in the gray market. If the demand for a company’s shares is good in the gray market, then the chances of that stock trading at a premium increase. This is called that stock’s “gray market premium” (GMP).
read this too
If we look at Hyundai Motor India’s GMP share, it is currently showing a growth of just Rs 5. In the IPO, Hyundai Motor India’s share price remained at a high level of Rs 1,960, while its probable listing price is shown at just Rs 1,965. In this way, no great benefits are seen in the company’s share price.
Previously, when larger IPOs than Hyundai Motor India came to the country, their listing status was similar. LIC shares fell 7.8 per cent. While Paytm shares also traded down 27.3 percent.
How was Hyundai Motor India’s IPO?
According to data from the National Stock Exchange, 9,97,69,810 shares were offered under Hui’s IPO, while offers for a total of 23,63,26,937 shares were received till the last day. In terms of categories, subscription in the QIB segment increased by 6.97 times, in the non-institutional segment by 60 percent and in the retail segment by 50 percent. The company had raised Rs 8,315 crore from anchor investors even before the IPO opened.
In this IPO, Hyundai Motor India’s parent company, Hyundai Motor Company, had put the entire shares up for sale. No new shares have been issued in this regard. Thus, the money from this IPO will go to the Korean parent company and Hyundai Motor India will not receive money to grow. It is the first IPO of an automobile company in the last two decades, after Maruti Suzuki’s IPO in 2003.
