Hyundai Motor India IPO: Auto Giant's GMP Turns Positive Ahead Of Listing Tomorrow; Check Status

The highly anticipated listing of Hyundai Motor India Ltd.'s initial public offering (IPO), the largest in India's history, is set for tomorrow, October 22. While the IPO saw tepid demand from retail investors, it managed to close successfully by the end of its subscription period.

The Hyundai Motor India IPO opened for bidding on October 15 and closed on October 17, with the allotment of shares finalized on October 18. The equity shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). With the allotment complete, investors are now keenly watching the grey market premium (GMP) to estimate the listing price.

Hyundai Motor India IPO GMP

Ahead of the listing, Hyundai's shares have shown a volatile trend in the grey market. After dipping into negative territory last week, the Hyundai Motor India IPO GMP today stands at Rs 65-70 per share, as per market observers. This indicates that the stock is trading around Rs 70 higher than its issue price in the unofficial market, which is often used by investors to predict the likely listing price.

Based on the current GMP and the issue price of Rs 1,960 per share, Hyundai Motor India shares are expected to list in the range of Rs 2,025 to Rs 2,030 apiece. This reflects a modest premium of approximately 3.5%, signalling a cautious yet positive outlook ahead of the official listing.

Key Details of the Hyundai IPO

The Hyundai Motor India IPO set a price band of Rs 1,865 to Rs 1,960 per share. At the upper end of this price range, the company raised Rs 27,870.16 crore through the IPO, making it the largest in Indian history. The issue consisted entirely of an offer for sale (OFS), with 14.22 crore equity shares up for grabs.

Despite initial concerns about demand, the Hyundai IPO was subscribed 2.37 times overall. This included bids for 23.63 crore equity shares against the 9.97 crore shares available. The subscription breakdown showed that the retail investor segment was less enthusiastic, with only 50% of the shares allocated to them being subscribed. The non-institutional investors (NIIs) category saw 60% subscription, while the qualified institutional buyers (QIBs) category was much more active, with a robust 6.97 times subscription. The employee portion also saw decent interest, with 1.74 times subscription.

Biggest IPO in India

Hyundai Motor India's IPO holds the distinction of being the country's largest public offering, surpassing even the record set by LIC in 2022. The significant interest from institutional investors helped the IPO succeed, despite lower retail participation.

Leading financial institutions like Kotak Mahindra Capital Company, Citigroup Global Markets India, HSBC Securities & Capital Markets, JP Morgan India, and Morgan Stanley India Company acted as the book-running lead managers for the IPO. KFin Technologies served as the registrar for the issue.

With the listing set for tomorrow, investors will be keeping a watch on the stock's performance, especially given the modest GMP and the overall market sentiment. While the IPO didn't receive an overwhelming response from retail investors, the strong subscription from institutional buyers suggests long-term confidence in Hyundai Motor India's growth potential.