Hyundai Motor India IPO Subscribed Just 0.28 Times on Opening Day Amid Cautious Market Sentiment
DNN 
The Hyundai Motor India IPO opened for subscription today (October 15, 2024), but demand has been tepid. As of the initial hours of the subscription period, the IPO was subscribed only 0.28 times. This relatively low subscription rate could reflect the market’s cautious sentiment, influenced by broader economic conditions and recent geopolitical tensions. Despite this, Hyundai Motor India aims to raise up to $3.26 billion, making it one of the largest IPOs in India’s history, second only to LIC’s IPO in 2022.
The subscription will remain open until October 17, 2024, with shares expected to list on October 22. Marking the largest IPO in India’s history, valued at approximately ₹27,870 crore. This IPO is an entirely Offer-for-Sale (OFS) by Hyundai Motor Company, meaning Hyundai Motor India will not receive any proceeds. The price band is set at ₹1,865-1,960 per share, with a minimum bid lot size of 7 shares.
The public subscription opens on October 15 and closes on October 17, 2024. Shares are expected to be listed on the BSE and NSE on October 22, 2024. The grey market premium (GMP) for Hyundai Motor India shares has been around ₹58 above the IPO price.
Here are more details about the Hyundai Motor India IPO:
1. IPO Size and Price: The Hyundai Motor India IPO is valued between ₹25,000 crore and ₹27,870 crore, making it the largest in India’s history, surpassing the Life Insurance Corporation (LIC) IPO of ₹21,000 crore. The price band has been set at ₹1,865 to ₹1,960 per share.
2. Offer for Sale (OFS): This IPO is an Offer for Sale, meaning Hyundai Motor India will not receive any proceeds. The parent company, Hyundai Motor Company, is selling up to 142.19 million equity shares.
3. Subscription Dates:
Anchor investor bidding starts on October 14, 2024.
Public subscription opens on October 15 and closes on October 17, 2024. The final allotment of shares is expected by October 18, and shares will be credited to investors’ accounts on October 21, with trading on the BSE and NSE starting on October 22.
4. Lot Size and Investment: The minimum bid lot size is 7 shares, which requires a minimum investment of approximately ₹13,720. For high net-worth individuals (HNIs), larger investments range from ₹205,800 for 15 lots to ₹1,001,560 for 73 lots.
5. Company’s Financial Performance: Hyundai Motor India’s revenue in FY23 was ₹60,307.58 crore, an increase from ₹47,378.43 crore in FY22. For the nine months ending December 31, 2023, the company’s revenue stood at ₹52,157.91 crore, with total comprehensive income recorded at ₹4,376.52 crore.
6. Grey Market Premium (GMP): The unlisted shares of Hyundai Motor India are currently trading at a premium of ₹58 in the grey market, indicating strong demand.
7. Lead Managers: The book-running lead managers for the IPO include top financial firms like Citigroup Global Markets, JP Morgan, Morgan Stanley, and Kotak Mahindra Capital.
These factors contribute to the hype around the Hyundai IPO, and many view it as a medium- to long-term investment opportunity.
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