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Hyundai Motor India Ltd (HMIL) is set to be listed on the BSE and NSE on October 22nd, following a successful IPO that saw a 237% subscription rate for its Rs 27,870 crore offer. Despite a muted retail response, strong demand from Qualified Institutional Buyers (QIBs) pushed the QIB portion to a 6.97 times oversubscription, making it the largest IPO in India's history.
The initial public offering witnessed significant fluctuations in its grey market premium (GMP). The premium for Hyundai Motor India's shares initially reached a high of Rs 570 in late September but plummeted into negative territory last week. However, a day before its official listing, the shares exhibited signs of recovery, rebounding to a premium of Rs 95, indicating a potential listing gain of approximately 5%.
The IPO's price band was set at Rs 1,865-1,960 per share. The sluggish demand from retail investors can be attributed to concerns regarding the high valuation, the fall in grey market premium, and the overall weak demand in the auto sector during the festive season. Hyundai, however, expects that the listing of the equity shares will enhance its visibility and brand image, provide liquidity, and create a public market for its shares.
HMIL, established in India in 1996, currently sells 13 models across various segments. The company's listing on the stock exchange will undoubtedly be closely watched by market observers as they assess the impact of the IPO on its future growth and performance.
Source: Hyundai India IPO GMP rebounds to green a day ahead of listing