Himalaya Harbinger, Rudrapur Bureau
Hyundai Motor India IPO Listing Date: Hyundai Motor India Ltd, the shares of which are going to be listed on both BSE and NSE on Tuesday, has now turned positive in the grey market with its unlisted shares trading at a premium of 4.85 per cent, indicating a listing profit for investors.
It is a significantly positive development as compared with around minus 2 per cent GMP last week, which had indicated a loss for investors
As per the latest grey market premium (GMP), the shares are now likely to give a listing gain of around 5 per cent tomorrow, October 22.
The Hyundai Motor India IPO, which was opened for public subscription between October 15 and October 17, received a 2.37 times subscription. Its retail (with 0.50 times subscription) and non-institutional investor (0.60 times) quotas remained oversubscribed. However, the QIB category recieved the most subscription (6.97 times) pushing the overall subscription numbers.
The Rs 27,870.2-crore IPO, which is a complete offer-for-sale (OFS) where the company’s South Korean parent will be diluting some of the stake, received overall bids for 23,63,26,818 shares as against the 9,97,69,810 shares on offer.
The Hyundai Motor India IPO is India’s biggest IPO comfortably surpassing LIC’s Rs 21,000-crore IPO, which was until now the biggest IPO in the country’s history.
The price band of the much-awaited IPO was fixed in the range of Rs 1,865 to Rs 1,960 per share.
Hyundai Motor India IPO GMP Today
According to market observers, unlisted shares of Hyundai Motor India Ltd are trading just Rs 95 higher in the grey market than its issue price. The Rs 95 grey market premium or GMP means the grey market is expecting a 4.85 per cent listing gain from the public issue. The GMP is based on market sentiments and keeps changing.
The GMP was minus Rs 32 on Friday, October 18, which indicated a negative listing.
The GMP of the Hyundai Motor India IPO has been falling consistently from Rs 175 on October 9 to just Rs 5 on the final day of bidding on Wednesday. However, a day before listing on Monday, it has sharply recovered and is now showing a GMP of Rs 95.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Hyundai Motor India IPO: More Details
Hyundai Motor India commenced operations in India in 1996 and currently sells 13 models across segments.
In its draft papers, Hyundai Motor India said, “Further, our Company expects that listing of the Equity Shares will enhance our visibility and brand image and provide liquidity and a public market for the Equity Shares in India.”
Hyundai set up its India operations in 1996, starting off with the Santro hatchback, once its most sold car. Hyundai holds India’s no.2 carmaker spot, coming in behind Maruti Suzuki. It currently has a roughly 15% share in the country’s competitive car market. It sold 614,721 cars in India and exported 163,155 units in the year to March 2024
Hyundai has one factory outside of Chennai in southern Tamil Nadu state, also dubbed the Detroit of Asia. The factory has a capacity of 824,000 units per year and is running at a utilisation rate of 94 per cent, leaving little room for growth that would help compete with Maruti Suzuki.
Hyundai aims to reach production of about 1 million units a year with the acquisition of a former General Motors plant in western Maharashtra state. The plant is expected to start operations only by the second half of the year to March 2026.
Hyundai has 1,377 dealers across India. In India, the carmaker sells 13 models, with the ‘Creta’ and ‘Venue’ sport utility vehicles as well as the ‘Grand i10 Nios’ hatchback among its top-selling models
Hyundai’s current factory is also a key export hub, which manufactures cars that are shipped to South Africa, the Middle East as well as Latin America.
Citi, HSBC Securities, JP Morgan, Kotak Mahindra Capital and Morgan Stanley are the investment banks advising on the transaction and law firm Shardul Amarchand Mangaldas is the company counsel. Cyril Amarchand Mangaldas is the banks’ counsel and Latham and Watkins is acting as the international counsel.
