As Hyundai Motor India gears up for its IPO listing on October 22, 2024, investors are keeping a close watch on the market sentiment and grey market premium (GMP) trends. Hyundai’s IPO, which is India’s largest so far, had a lukewarm reception from retail investors but managed to fully subscribe by the end of the bidding period.
The IPO opened for subscription on October 15 and closed on October 17, with the allotment finalized on October 18. Investors now shift focus to the listing price, wondering whether Hyundai will see a strong debut or list at a discount.
Hyundai IPO GMP Today
The grey market premium (GMP) for Hyundai shares has been fluctuating, with stock market observers noting that after dipping into negative territory last week, the GMP has now recovered to a modest ₹65-70 per share. This indicates that Hyundai Motor India shares are trading at a premium of around ₹70 over the issue price of ₹1,960 per share in the grey market.
Based on this GMP, Hyundai shares could list at an estimated price of ₹2,025 – ₹2,030 apiece, suggesting a premium of approximately 3.5%. This would be a modest gain for investors, though the trend remains volatile, and many are concerned about potential downside risks.
Retail Demand & Sentiment
While retail investor demand was weaker than expected, institutional and high-net-worth investors showed stronger interest in Hyundai’s IPO. Analysts believe that although the GMP indicates a slight premium, the volatile nature of the grey market suggests that Hyundai’s listing could be relatively flat or face minor negative pressure, depending on market sentiment at the time of listing.
Hyundai is preparing for a grand listing ceremony at the National Stock Exchange (NSE) in Mumbai, where the company’s global leadership, dealers, and suppliers will be in attendance. However, the subdued retail response and fluctuating grey market trends have left some uncertainty regarding the stock’s performance post-listing.
What to Watch For
Investors should keep an eye on market movements and the final opening price, as the grey market’s modest premium might not necessarily translate to a strong listing.
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