Hyundai Motor India Ltd is set to make its highly anticipated debut on the Indian stock market today, October 22, 2024. The equity shares of the company will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). After facing a subdued response during the subscription phase, the Hyundai IPO listing date has been confirmed for today.
IPO Subscription and Allotment Details
The initial public offering (IPO) of Hyundai Motor India was open for subscription from October 15 to October 17, with the allotment finalized on October 18. The IPO price band was set between ₹1,865 and ₹1,960 per share, allowing the company to raise a substantial ₹27,870.16 crore, making it one of India’s largest IPOs. The entire issue comprised an offer for sale (OFS) of approximately 14.22 crore equity shares.
While the overall subscription figures were promising, with the issue being subscribed 2.37 times (receiving bids for 23.63 crore equity shares against 9.97 crore shares on offer), the response from Non-Institutional Investors (NIIs) and Retail Investors was relatively tepid. The retail portion was subscribed at just 50%, while NIIs saw a subscription rate of 60%. On a brighter note, Qualified Institutional Buyers (QIBs) displayed strong interest, with their segment subscribed 6.97 times.
Also Read: IPO GMP
Trading Details and Market Sentiment
In a notification released by the BSE, trading members were informed that Hyundai Motor India Limited’s shares would be listed and admitted to dealings under the ‘A’ Group of Securities effective today. The shares will participate in the Special Pre-open Session (SPOS) starting at 10:00 AM, with trading expected to commence thereafter.
As we approach the listing, the grey market premium (GMP) reflects a volatile trend. Today’s GMP is reported to be between ₹65 and ₹70 per share, indicating that shares are expected to debut at a price around ₹2,025 to ₹2,030, translating to a modest premium of approximately 3.5% over the IPO issue price.
However, analysts predict a muted debut for Hyundai Motor India’s shares. Prashanth Tapse, Senior VP Research Analyst at Mehta Equities Ltd, cautioned that investors should brace for a flat to potentially negative market debut. “Considering sluggish undersubscription demand from NIIs and retail investors, along with concerns over overvaluation and high inventory levels across the sector, the market sentiment is weak,” he explained.
Also Read: Hyundai Motor India IPO Review
Expert Opinions on Hyundai IPO
Experts are urging caution among investors regarding immediate listing gains. Tapse recommends a ‘Hold’ strategy for allotted investors, despite potential short-term volatility, emphasizing the need for patience. For those who did not secure allotments, he suggests waiting for a more favorable price before re-entering the market.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, echoed these sentiments, pointing out that the current GMP signals expectations of a flat to moderate listing. Nyati noted, “The IPO valuation appears fully priced, and since it’s a complete OFS, Hyundai will not see any proceeds from this offer.”
Despite these challenges, Nyati remains optimistic about Hyundai’s long-term growth potential, highlighting the company’s strong position as the second-largest player in India’s passenger vehicle market and its strategic focus on SUVs. “While immediate gains may be limited, Hyundai’s robust fundamentals make it an attractive long-term investment,” she added.
Conclusion
As Hyundai Motor India prepares to list its shares today, investors are advised to keep a close eye on market movements and trading trends. Although the current sentiment points towards a cautious debut, the company’s established market position and growth trajectory remain compelling factors for long-term investors. With trading set to commence at 10:00 AM, all eyes will be on how Hyundai’s shares perform in the bustling Indian stock market.