Hyundai Motor India IPO Off to slow start: 0.11x subscription, GMP falls 1%
Source: Business Standard
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.
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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.
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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.
First Published: Oct 15 2024 | 1:11 PM IST
