Business: Hyundai Motor India opened its initial public offering (IPO) on October 16, 2024, at a price between Rs 1865 and Rs 1960 per share. The offer aims to raise Rs 27,870.16 crore and will be open for subscriptions till October 17. The IPO is 22% subscribed from day two, with mixed interest from retail and institutional investors.

IPO subscription status

The Hyundai Motor India IPO, which began on October 16, currently has a 22% subscription as of 11:15 IST on day two. Bids have been received for 2,18,65,193 shares against 9,97,69,810 shares outstanding. Retail investors tendered 32% of their shares, while noninstitutional investors (NIIs) and qualified buying institutions (QIBs) registered 17% and 5%, respectively.

Key Subscription Figures:

• Retail Subscription: 32%
• NII Subscription: 17%
• QIB Subscription: 5%
• Employee Subscription: 1.08 times

IPO information and market performance

Hyundai Motor India shares a grey market premium (GMP) of Rs 65. An IPO, an offering to sell outright (OFS), means the company will not receive any proceeds from the public issue. The lot size for the application is seven shares.

Important Information:

• IPO Price Band: Rs 1865 - Rs 1960 per share
• IPO Size: Rs 27,870.16 crore
• Allotment Date: October 18, 2024
• Listing Date: October 22, 2024

Expert opinion on IPOs

Analysts generally assign a ‘subscribe’ tag to the IPO, citing Hyundai’s strong operating efficiency and strong financial performance. Gaurav Garg of Lemon Markets highlighted the brand’s strong revenue growth and attractive long-term closing prospects despite initially marginal inventory gains. Similarly, Master Capital expressed confidence in the company’s ability to expand its market share in passenger vehicles and electric vehicles (EVs).