Hyundai Motor India IPO Listing Today LIVE: Latest GMP Suggests Ola Moment Today, What Should Investors Do? – News18

Hyundai Motor India IPO Listing Date: Hyundai Motor India Ltd is making its debut on the Indian stock market today, October 22, with its equity shares set to be listed on the stock exchanges. Despite experiencing subdued demand during the IPO, the company is proceeding with the listing as scheduled.

The shares are going to be listed on both BSE and NSE, and have 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.

Hyundai Motor India IPO GMP Today

Shivani Nyati, Head of Wealth, Swastika Investmart, said, “Hyundai Motor India Limited’s IPO received a decent subscription of 2.3 times, with a full subscription achieved on the last day. The current grey market premium (GMP) of Rs 67 (3.42%) suggests expectations of a flat to moderate listing. The IPO valuation seems fully priced, and since the issue is a complete OFS, the company will not receive any proceeds from the offer.”

While Hyundai Motor India holds a strong market position as the second-largest passenger vehicle company in India, and its strategic focus on SUVs is promising, the overall market sentiment and IPO size may limit listing gains. Investors with a long-term outlook and the ability to navigate potential listing challenges may consider holding onto their investments post-listing for potential future growth.

“In conclusion, we anticipate a steady debut, and while immediate listing gains may be modest, Hyundai’s robust fundamentals make it an attractive long-term investment.”

Master Capital Services noted that the Hyundai Motor India IPO is highly anticipated due to the company’s strong market position in the Indian passenger vehicle segment. On 21st Oct, the company’s shares at pre-listing are trading at a grey market premium of Rs 75 which is 3.8% higher than its original price band. This means that the shares might list at Rs.2035 on 22nd Oct.

“Despite some concerns regarding short-term listing gains due to subdued grey market premium, the company offers steady growth prospects amid industry tailwinds, robust financials and healthy SUV product demand. Hyundai’s leadership in India’s passenger vehicle market, along with its strategic focus on electric vehicles makes a compelling investment for long-term investors.”

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.

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.