Hyundai Motor India Ltd (HMIL) is all set to list on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) tomorrow, October 22. While it was oversubscribed 2.37, it received a lukewarm response in the retail category. Retail investors’ portion was booked 50%, while non-institutional investors (NIIs) category was subscribed 60%. The qualified institutional buyers (QIBs) portion saw a subscription of 6.97 times and the employee portion was subscribed 1.74 times.
As per sources, Hyundai Motors’ current Grey Market Premium (GMP) is 2%. It indicates that the stock might open with 2% listing gains. The listing will also depend on the overall market. The NIFTY was today down 0.29% or 72 points to close at 24,781. The Sensex was down 0.09% to close at 81,151. If the market is weak tomorrow, it will impact Hyundai Motors’ listing too. It will also be interesting to see if there is fresh buying once the stock is listed.
Many market experts had suggested to avoid the IPO as it demanded a high valuation. The price band was set at ₹1,865 to ₹1,960 per share. At the upper-end of the price band, the company raised ₹27,870.16 crore from the IPO, making it India’s biggest IPO. The issue was entirely an offer for sale of 14.22 crore equity shares.
Kotak Mahindra Capital Company, Citigroup Global Markets India, HSBC Securities & Capital Markets, JP Morgan India and Morgan Stanley India Company are the book running lead managers of the Hyundai IPO, while Kfin Technologies is the IPO registrar.
Disclaimer: Article only for educational purpose. Please consult your financial advisor before taking any financial decision.
