Hyundai Motor India IPO: Share Allotment Likely Today, GMP Turns Negative; How To Check Status Online?

The much-anticipated initial public offering (IPO) of Hyundai Motor India Ltd, which stands as the largest in Indian history, has completed its subscription process. The Rs 27,870.16 crore IPO, open from October 15 to October 17, managed to sail through despite a tepid response from retail investors. The issue was primarily buoyed by strong demand from qualified institutional buyers (QIBs). Now, investors eagerly await the finalization of Hyundai Motor India's IPO allotment, which is expected to be confirmed on Friday, October 18, 2024.

Hyundai Motor India's Historic IPO

Hyundai Motor India's IPO has been the talk of the market for its sheer scale and significance. With a price band of Rs 1,865 to Rs 1,960 per share, the company's public offering involved a total sale of 14.22 crore equity shares, amounting to Rs 27,870.16 crore. Notably, this IPO is entirely an offer for sale (OFS), meaning that no fresh capital is being raised, and the shares being sold belong to existing shareholders.

The overall subscription to the IPO was 2.37 times, with the issue receiving bids for 23.63 crore equity shares against the 9.97 crore shares on offer. The demand was led by QIBs, whose portion was subscribed 6.97 times. In contrast, the retail investors' portion was subscribed only 50%, and the non-institutional investors (NIIs) subscribed 60%. The employee category also saw moderate interest, with a subscription of 1.74 times.

Hyundai IPO Allotment

As the bidding period has concluded, the focus now shifts to the allotment of shares. The company is expected to finalize the basis of the Hyundai Motor India IPO allotment on October 18, 2024. Once the allotment process is completed, shares will be credited to the demat accounts of successful applicants on Monday, October 21. Meanwhile, refunds for unsuccessful bidders will also be initiated on the same day.

For those who have applied for the IPO, the allotment status can be checked online either through the Bombay Stock Exchange (BSE) website or the official portal of the IPO registrar, Kfin Technologies. Here's a step-by-step guide on how to check the allotment status.

How to Check Hyundai Motor IPO Allotment Status on BSE?

Visit the BSE website at BSE Allotment Status
Select 'Equity' under the "Issue Type."
Choose 'Hyundai Motor India Limited' in the "Issue Name" dropdown.
Enter your Application Number or PAN details.
Verify by selecting 'I am not a robot' and click 'Search.'
Your allotment status will be displayed on the screen.

How to Check Hyundai Motor IPO Allotment Status on Kfin Technologies?

Visit the Kfin Technologies website at Kfin Technologies Allotment Status
Select 'Hyundai Motor India Limited' from the dropdown.
Choose to enter details via Application Number, Demat Account, or PAN.
Enter the relevant details and the Captcha code.
Click on 'Submit' to view the allotment status.

Grey Market Premium (GMP)

Even as investors await the allotment, the sentiment in the grey market remains weak. The Hyundai Motor India IPO shares are currently trading at a discount, reflecting a negative grey market premium (GMP) of Rs -33. This means that Hyundai shares are trading at Rs 33 lower than their issue price in the grey market, signalling a potential underperformance when listed.

Stock market analysts have pointed out that the negative GMP suggests a muted demand for Hyundai Motor shares in the unofficial market. The estimated listing price of the shares, based on the GMP, is around Rs 1,927, which is approximately 1.68% below the upper price band of Rs 1,960 per share.

The weak grey market sentiment is unusual for an IPO of this magnitude, especially for a company like Hyundai Motor India, which is a dominant player in the Indian automobile market. However, market experts suggest that the general market conditions, coupled with concerns about high valuations, might be contributing to the subdued interest.

Important Dates to Remember

Hyundai IPO Allotment Date: October 18, 2024
Share Credit to Demat Accounts: October 21, 2024
Refunds for Unsuccessful Bidders: October 21, 2024
Hyundai IPO Listing Date: October 22, 2024 (on both BSE and NSE)

Lead Managers and Registrars

Several prominent financial institutions are overseeing the success of Hyundai Motor India's IPO. Kotak Mahindra Capital Company, Citigroup Global Markets India, HSBC Securities & Capital Markets, JP Morgan India, and Morgan Stanley India are the book-running lead managers. The IPO registrar is Kfin Technologies, which is responsible for handling the allotment process and investor queries.