Hyundai Motor India IPO Listing: The IPO of Hyundai Motor India Limited, the country’s second largest car company, will be listed on the stock exchange on Tuesday, October 22, 2024. According to the gray market price on Monday 21 October 2024, the listing issue price of Hyundai Motor India is expected to be Rs 1960 with an upside of about 4 per cent. There has been a slight decline in Hyundai Motor’s GMP on October 21 as compared to October 20.
IPO filled due to institutional investors
Hyundai Motor India had come last week with the largest IPO in terms of size in the history of the Indian stock market, which was open for applications from 15 to 17 October. The company has raised Rs 27870 crore through IPO under Offer for Sale. The company had fixed the price band of the IPO at Rs 1865 to Rs 1960 at the face value of Rs 10. According to BSE data, the IPO has been subscribed 2.37 times. If the IPO is successful in getting filled completely, then the credit goes to the institutional investors. The reserve quota for institutional investors has been subscribed a total of 6.97 times. Whereas the category of non-institutional investors could subscribe only 0.60 times and that of retail investors could subscribe only 0.50 times.
Big IPO investors left empty handed!
Despite the lackluster response from retail investors, Hyundai Motor India’s IPO will be listed on the stock exchange with modest but positive gains. Hyundai Motor India is the first automobile company to launch its IPO after Maruti Suzuki’s IPO in 2003. The history of the Indian stock market has been that whichever company brings a big IPO disappoints the investors at the time of listing. According to a study by Capitalmind Financial Services, out of the 30 IPOs launched in the country in terms of size, 18 IPOs have disappointed investors, which includes companies like Reliance Power and Paytm.
Investment suggestions with a long-term perspective
The shares are being credited to the demat accounts of the investors who were allotted shares of Hyundai Motor India on October 21. Most of the brokerage houses are positive on Hyundai Motor India’s IPO keeping the long term in mind. Shares have been allotted to large domestic institutional investors in the IPO, which include the country’s largest insurance company LIC, Axis Mutual Fund, Yes Bank Limited, AU Small Finance Bank, HDFC Life Insurance and ICICI Lombard.
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