Hyundai Motor India IPO off to slow start: 0.11x subscription, GMP falls 1%
Notably, Hyundai Motor India's IPO marks the first time in two decades that a carmaker has gone public in India, following Maruti Suzuki's listing in 2003
 "Hyundai Motor India IPO off to slow start: 0.11x subscription, GMP falls 1%")
Hyundai Motor IPO subscription status: South Korean automaker Hyundai Motor's India arm, Hyundai Motor India, launched the country's largest Initial Public Offering (IPO) today, but it has received a subdued response from investors so far. According to NSE data, by around 12:24 PM on Tuesday, Hyundai Motor India’s IPO had received bids for 1,06,56,219 shares against the 9,97,69,810 shares on offer, translating to a subscription of just 0.11 times. Retail Individual Investors (RIIs) have subscribed 0.18 times, while Non-Institutional Investors (NIIs) have subscribed 0.07 times of the public issue.
However, the IPO has seen minimal interest from Qualified Institutional Buyers (QIBs), who have bid for just 1,029 shares against the 2,82,83,260 shares reserved for this category. Meanwhile, the quota reserved for employees has been subscribed 0.48 times.
In the grey market, the premium for Hyundai Motor India’s unlisted shares has been on a steady decline. The company's shares were trading at a premium of Rs 25 against the upper end of the IPO price of Rs 1,960, reflecting a grey market premium (GMP) of 1.28 per cnet. Today’s GMP is significantly lower than the Rs 147 recorded on October 9, when Hyundai Motor announced its price band, revealed the sources tracking grey market activities. IPO GMP generally reflects investor sentiment and demand, with a higher GMP indicating strong demand and potential for listing gains. That said, GMP is an unofficial and unregulated market indicator, subject to factors such as market conditions, company fundamentals, and investor enthusiasm.
Notably, Hyundai Motor India’s IPO marks the first time in two decades that a carmaker has gone public in India, following Maruti Suzuki’s listing in 2003. With this IPO, the Seoul-headquartered company will make its first stock market debut outside South Korea.
At the upper end of the price band, the company seeks to raise Rs 27,870.16 crore by divesting 14,21,94,700 shares with a face value of Rs 10 apiece. Hyundai Motor has set the IPO price band at Rs 1,865–Rs 1,960, with a lot size of seven shares. Investors can bid for a minimum of seven shares and in multiples thereof.
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About Hyundai Motor India
Hyundai Motor India (HMIL) is India’s second-largest passenger car manufacturer. Established in 1996, HMIL is a wholly-owned subsidiary of Hyundai Motor Company, South Korea. The company’s manufacturing plant is located in Sriperumbudur, Tamil Nadu, with an annual production capacity of 7.5 lakh units. Popular models include the Grand i10, i20, Creta, Venue, and Tucson. HMIL is a major player in the global automotive market, exporting to over 88 countries.