India’s second-largest OEM Hyundai Motors initial public offering (IPO), which opened for subscription on October 15, was subscribed only 18 per cent or 0.18 times on the first day of bidding. The issue received bids for over 1.77 crore shares, compared to the 9,97,69,810 shares available for subscription.
Retail investors took the lead, subscribing to 26 per cent of the issue, while non-institutional investors followed, booking 13 per cent so far. Meanwhile, the portion allocated to qualified institutional buyers (QIBs) garnered only 1,389,647 bids, representing 5 per cent of the 28,283,260 shares reserved for them.
The Hyundai Motor India IPO has allocated 50% of the shares in the public offering to qualified institutional buyers (QIB), 15% to non-institutional investors (NII), and 35% is allocated for retail investors. Additionally, the employee reservation segment includes a maximum of 778,400 equity shares. Eligible employees taking part in this segment will receive a discount of ₹186 per equity share.
Hyundai IPO GMP
The shares of Hyundai IPO is currently trading at a premium of ₹58 in the grey market, as per investorgain. com. This means that the estimated listing price of Hyundai IPO is likely to be ₹2018, which is 2.96 per cent higher than the IPO price of ₹1960.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Hyundai IPO details
The Hyundai Motor India IPO will be open for bidding from Tuesday to Thursday this week. The automaker has set the IPO price range between ₹1865 and ₹1960 per equity share.
The automobile company plans to raise ₹27,870.16 crore via IPO.
The entire issue consists of an offer for sale (OFS) of 14.2 crore shares, which will be sold by the company’s parent, Hyundai Motor Global. As the IPO is purely an OFS, all proceeds will go to the selling shareholder.
Although the parent company will receive all the funds from the IPO, the management stated that the money will be allocated for research and development and the introduction of new innovative products.
A bidder can participate in the public offering by applying in lots, with each lot consisting of seven company shares.
Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, HSBC Securities & Capital Markets Pvt Ltd, J.P. Morgan India Private Limited, and Morgan Stanley India Company Pvt Ltd have been designated as the lead managers for the public offer. Meanwhile, KFin Technologies has been appointed official registrar of the book build issue.
