Hyundai India IPO GMP rebounds to green a day ahead of listing

The company has stated that it expects that the listing of the equity shares will enhance its visibility and brand image, and provide liquidity.

Hyundai Motor India Ltd (HMIL) shares will be listed on the BSE and NSE on October 22 after a 237 percent subscription for its Rs 27,870-crore offer.

Hyundai Motor India, the Indian subsidiary of the South Korean automaker, saw a muted retail response to its initial public offering (IPO). However, strong demand from Qualified Institutional Buyers (QIBs) compensated for this, with the QIB portion being oversubscribed by nearly 700 percent, or 6.97 times.

The company’s IPO, the largest in India’s history, also experienced significant volatility in its grey market premium (GMP). According to platforms tracking GMP trends, the premium for Hyundai Motor India's shares dropped sharply into negative territory last week, after hitting a high of Rs 570 in late September.

Hyundai IPO: What's behind the sluggish demand from retail investors

However, a day before its official listing, the shares showed signs of recovery in the grey market, rebounding to a premium of Rs 95, indicating a potential listing gain of approximately 5 percent.

The IPO has a price band of Rs 1,865-1,960 per share.

The demand from retail investors remained sluggish as there were concerns over high valuation, fall in grey market premium of shares and overall weak demand in the auto sector during the festive seasons.

The company has stated that it expects that the listing of the equity shares will enhance its visibility and brand image, and provide liquidity and a public market for the shares. HMIL commenced operations in India in 1996 and currently, sells 13 models across segments.

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