India’s Largest IPO Performance: Hyundai Motor India is bringing the largest IPO in the history of the Indian stock market in terms of size next week. The company is going to raise Rs 27,870 crore through IPO. But before the opening of the IPO and after the announcement of the price band, the company’s GMP is trading only 7 percent higher or at Rs 147 in the gray market. This means that investors investing in IPO are likely to get weak listing gains.
Hyundai Motor India’s IPO will be open for investment from 15 to 17 October. But let us tell you how the stocks of companies that raised more than Rs 10,000 crore through IPO have performed on the day of listing.
LIC gave negative returns on listing
Government sector life insurance company LIC had come with an IPO of Rs 21008 crore in May 2022, which was the largest IPO. The share with the issue price of Rs 949 was listed at Rs 875 with a discount of 7.79 percent.
Shares fell 27 percent on the day of listing
Paytm’s parent company One 97 Communications Ltd had come up with an IPO of Rs 18,300 crore in November 2021 at an issue price of Rs 2150. The stock priced at Rs 2150 was listed at Rs 1950 and on the day of listing, Paytm’s share closed at Rs 1560.
Coal India gave excellent returns
Coal India, the largest public sector coal company, had launched an IPO of Rs 15199 crore in 2010 at an issue price of Rs 245. The IPO received a strong response from investors. On November 4, 2010, Coal India’s stock was listed at Rs 342 with a listing gain of 40 percent.
Reliance Power had disappointed
Anil Ambani’s Reliance Power had come with IPO in 2008. The company had raised Rs 11,563 crore at the issue price of Rs 450. The IPO also received excellent response. But on February 2, 2008, Reliance Power’s stock was listed at a discount of 17.33 percent from the issue price.
GIC also slipped on listing
Public sector General Insurance Corporation of India (GIC), which is into reinsurance services, had raised Rs 11,175 crore through IPO in 2017. The stock with issue price of Rs 912 was listed at Rs 870 with a decline of 11 percent.
SBI Cards also slipped on listing
SBI Cards & Payment Services Limited (SBI Cards & Payment Services) had raised Rs 10,354 crore in IPO in March 2020. The impact of the Corona epidemic was seen on the company’s IPO and on March 17, 2020, the share with the issue price of Rs 755 was listed at Rs 683. That means, among the six companies that had raised Rs 10,000 crore so far in the Indian stock market, only Coal India’s IPO has given strong returns on listing.
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Hyundai Motor IPO: Price band of Hyundai Motor IPO is possible Rs 1865 – 1960, you can invest from 15 to 17 October
