The Hyundai Motor India IPO is set to make its debut on the stock exchanges Tomorrow, October 22, 2024. This highly anticipated listing follows a subscription period from October 15 to October 17, during which the IPO garnered significant attention, ultimately being subscribed 2.37 times overall. The price band for the IPO was fixed at Rs. 1,865 to Rs. 1,960 per share, making it India’s largest IPO to date, surpassing the previous record held by LIC.
Listing Details
Hyundai Motor India Ltd (HMIL), the Indian subsidiary of the South Korean automotive giant, is expected to list its shares on both the BSE and NSE Tomorrow. The market has been closely watching the grey market premium (GMP), which has fluctuated significantly in recent days. As of now, the GMP indicates a potential listing at a slight discount or around the issue price, with current estimates suggesting a mere Rs. 5 premium, translating to a modest 0.26% gain over the upper price band of Rs. 1,960.
When Will the Settlement Price Be Determined?
The settlement price for an IPO is determined during the pre-open session, which takes place from 9:00 AM to 10:00 AM on the day of the IPO listing. The pre-open session is divided into three phases:
- Order placement session: 9:00 AM to 9:45 AM
- Order matching and execution session: 9:45 AM to 9:55 AM
- Buffer period: 9:55 AM to 10:00 AM
The IPO listing ceremony takes place at 9:00 AM, and regular trading begins at 10:00 AM. During the pre-open session, investors place their orders, which are then matched and executed to determine the stock’s listing price. The price is expected to settle before regular trading begins at 10:00 AM.
GMP and Expectations
Market observers have noted a decline in the GMP from earlier highs of Rs. 175 to just Rs. 5 in the lead-up to the listing, reflecting cautious investor sentiment. The initial excitement surrounding the IPO has been tempered by concerns over retail participation, which was notably low at just 0.50 times subscribed in that category.
Despite these challenges, institutional investors showed strong interest, with qualified institutional buyers (QIBs) subscribing 6.97 times, helping to bolster overall subscription numbers. Analysts have mixed views on the immediate performance of Hyundai’s shares post-listing, with some predicting a weak debut around Rs. 1,930, representing a slight discount from the upper end of the issue price.
As Hyundai Motor India prepares for its stock market debut Tomorrow, investors will be keenly observing how market dynamics unfold during trading hours. The settlement price, determined during the pre-open session, will be crucial in setting the tone for the day. With expectations of modest gains or potential dips based on current GMP trends, Tomorrow listing will be critical for gauging investor confidence in one of India’s most prominent automotive players.
Disclaimer: This content is for informational purposes only and should not be considered financial advice. It is not a recommendation to buy, sell, or hold any securities. Readers are advised to consult their financial advisor before making any investment decisions. The author and the publication are not responsible for any investment losses incurred based on the information provided in this article.
