The much-anticipated listing of Hyundai Motor India is set to take place on October 22, with a significant presence from the company’s top executives. More than two dozen officials from Korea are expected to attend the event, including Hyundai Motor Group Executive Chairman & CEO Euisun Chung and Jaehoon Chang, President & CEO, Hyundai Motor, according to sources familiar with the situation.
The listing of the Indian arm of the Korean auto giant is viewed as a major milestone for the firm, prompting many representatives from the parent company to participate in the ceremony scheduled for tomorrow at the NSE. Among those flying in are several CXOs and heads of key verticals, including autonomous vehicle planning and strategy.
Incidentally, the Indian arm is also headed by a Korean -- Unsoo Kim – who serves as the MD & CEO of the company with his fellow national Wangdo Hur occupying the CFO’s chair. The COO of the Indian subsidiary, however, is Tarun Garg.
The Rs 27,870 crore IPO of Hyundai Motor India – the largest till date in the Indian market – closed on October 17 and was subscribed 2.37 times with only institutional investors showing huge interest in the offering, which was entirely an offer for sale by promoter entities.
Also Read: Hyundai India IPO GMP rebounds to green a day ahead of listing
While the QIB portion was subscribed nearly seven times, the other portions – those reserved for HNIs and retail investors – remained undersubscribed.
The price band for the offering was fixed at Rs 1,865-1,960 per share. The demand from retail investors remained sluggish as there were concerns over high valuation, a fall in grey market premium of shares and overall weak demand in the auto sector during the festive seasons.
The company’s IPO 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.
Ahead of the company’s IPO, the top brass of the auto major while speaking to Moneycontrol had said that its strategies are focused around looking for opportunities in terms of introducing new models, new technologies, EV space, and premiumisation.
They had further said that they were “very optimistic” about the Indian auto market and are looking at a single-digit growth this year – on a high base of last year – and that there are not too many headwinds.
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