The initial public offering (IPO) of Hyundai Motor India Ltd (HMIL) was subscribed 42 percent on the second day of bidding, October 16, 2024. According to NSE data, 4.17 crore shares were bid for against the 9.97 crore shares on offer as of 3 pm.
The retail individual investors (RII) portion saw 38 percent subscription, while non-institutional investors (NII) subscribed 26 percent. The qualified institutional buyers (QIB) category garnered a 58 percent subscription. Notably, the employee portion was fully subscribed, with 1.31 times the allocation booked.
Hyundai Motor India, the Indian arm of South Korean automaker Hyundai, raised Rs 8,315 crore from anchor investors on October 14, a day before the IPO opened. The Rs 27,870 crore IPO surpasses the size of LIC’s IPO, making it the largest in India’s history.
The IPO, priced in the range of Rs 1,865-1,960 per share, remains open until October 17, and the entire offer is an Offer for Sale (OFS) by the parent company, Hyundai Motor Company (HMC). There is no fresh issue component, meaning the proceeds will go to the promoter HMC, not HMIL.
GMP and market performance
Hyundai India’s shares are commanding a grey market premium (GMP) of around Rs 35, representing a modest 2 percent premium over the issue price. This indicates a decline in investor sentiment in the unofficial market, with the GMP falling to around 3 percent shortly before the IPO opened.
Hyundai India’s IPO marks the first by an automaker in over two decades, following Maruti Suzuki’s listing in 2003. The company expects the listing to enhance its visibility and brand image and to provide liquidity in the market for its shares.
Shares of Hyundai India will be listed on NSE and BSE on October 22, while allotment to successful bidders is scheduled for October 18. Post-listing, the company’s market capitalisation is expected to be around Rs 1.6 lakh crore.
