Hyundai Motor India IPO GMP inches up on Day 2; subscription rises to 0.22x

The public issue of Hyundai Motor India, which concludes tomorrow, is available at a price band of Rs 1,865-Rs 1,960, with a lot size of 7 shares

Hyundai Motor India IPO Day 2: The initial public offering (IPO) of Hyundai Motor India, which is also the largest IPO in the country, has received a subdued response from investors so far. According to NSE data, by around 11:30 PM on Wednesday, Hyundai Motor India IPO had received bids for 2,20,87,464 shares against the 9,97,69,810 shares offered, translating to a subscription of just 0.22 times. Retail Individual Investors (RIIs) have subscribed 0.33 times, while Non-Institutional Investors (NIIs) have subscribed 0.17 times of the public issue.

Hyundai Motor India IPO has seen the lowest participation from Qualified Institutional Buyers (QIBs), who have bid for just 13,91,642 shares against the 2,82,83,260 shares reserved for this category. Meanwhile, the quota reserved for employees has been oversubscribed 1.10 times.

That said, in the grey market, the premium for Hyundai Motor India’s unlisted shares has shown slight recovery on Wednesday. The company's shares were trading at a premium of around Rs 67 against the upper end of the IPO price of Rs 1,960, reflecting a grey market premium (GMP) of 3.42 per cent. Hyundai Motor IPO's today's GMP is, higher than the Rs 45 recorded yesterday when the issue opened for subscription. However, the GMP is significantly lower than the Rs 147 recorded on October 9, when Hyundai Motor announced its price band, according to sources tracking grey market activities.

Hyundai Motor India's IPO comprises an entirely offer for sale, with Hyundai Korea divesting 14,21,94,700 shares with a face value of Rs 10 apiece. At the upper end of the price band, the company seeks to raise Rs 27,870.16 crore. The public issue of Hyundai Motor is available at a price band of Rs 1,865–Rs 1,960, with a lot size of 7 shares. Thus, investors can bid for a minimum of seven shares and in multiples thereof.

The subscription window to bid for Hyundai Motor's IPO is expected to close on Thursday, October 17, 2024. Following the closure of the IPO subscription, the basis of allotment of Hyundai Motor India shares is likely to be finalised on Friday, October 18, 2024. The shares will be credited to demat accounts on Monday, October 21, 2024.

Hyundai Motor India shares are tentatively scheduled to debut on the stock exchanges, BSE and NSE, on Tuesday, October 22, 2024.

Should you subscribe to Hyundai Motor India IPO?  

Brokerage firms, including ICICI Direct, KRChoksey Research, SBI Securities, and IDBI Capital, have assigned a 'Subscribe' rating to the Hyundai Motor IPO. Additionally, Anand Rathi Research, LKP Securities, Arihant Capital, and Aditya Birla Money have recommended subscribing to the Hyundai Motor IPO for long-term investment. READ MORE