Hyundai IPO Listing Price
Hyundai Motor India‘s much-anticipated IPO hit the stock exchanges on Thursday, October 17, but its debut wasn’t as explosive as some had hoped. Shares listed at ₹1,934 on the NSE, a modest 1.3% discount compared to its issue price of ₹1,960. On the BSE, they debuted at ₹1,931, reflecting a 1.5% discount.
India’s Largest IPO: Key Details
Hyundai Motor India’s initial public offering, valued at ₹27,870.16 crore, is officially the largest public offering in India’s history. The IPO was open for bidding from October 15 to October 17, with shares priced in the range of ₹1,865 to ₹1,960.
Despite the excitement surrounding the offering, demand was a bit softer than expected. The IPO received bids for 23.63 crore shares, 2.37 times the available 9.89 crore shares. Retail investors and non-institutional investors (NII) didn’t fully subscribe, with retail booking only 0.50 times and NII segment at 0.6 times. The only fully subscribed category was Qualified Institutional Buyers (QIBs), which saw a strong 6.97 times subscription.
Hyundai Motor IPO Structure: What’s Offered?
Hyundai Motor’s IPO was structured as an offer for sale of 14.22 crore shares. Following the IPO, promoter shareholding will decrease to 82.5%. The company successfully raised ₹8,315.28 crore from anchor investors on October 14, 2024.
Retail investors were required to apply with a minimum lot size of 7 shares, which equated to a minimum investment of ₹13,720. However, it’s important to note that Hyundai Motor won’t directly benefit from the IPO proceeds; instead, all funds will go to the Promoter Selling Shareholder. After accounting for offer-related expenses and taxes, the remaining funds will be allocated to them.
For employees, there was a special reservation of 778,400 shares, offered at a ₹186 discount to the issue price.
Leading Managers and Registrars
The Hyundai Motor IPO was managed by an impressive lineup of lead managers, including Kotak Mahindra Capital, Citigroup Global Markets India, HSBC Securities & Capital Markets, J.P. Morgan India, and Morgan Stanley India. Kfin Technologies served as the registrar for the issue.
What Does This Mean for Investors?
Although the Hyundai Motor IPO didn’t see the explosive demand some might have anticipated, it still stands as a significant event in India’s financial markets. Investors will be watching closely to see how the shares perform in the coming days and how the company continues to evolve post-IPO.
Is Hyundai Motor India IPO a Good Investment?
With a solid foundation in the automotive industry and strong institutional backing, Hyundai Motor India’s IPO is still a noteworthy investment, especially for long-term investors. The company’s fundamentals, combined with the growing automotive market in India, may provide solid returns despite the muted listing.
Keep an eye on market movements and institutional buying patterns for cues on where this stock might head next!
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FAQ
What is the Hyundai IPO Listing Price?
On October 17, Hyundai Motor shares were listed at ₹1,934 on the NSE and ₹1,931 on the BSE, representing a discount of 1.3% and 1.5% respectively, compared to the issue price of ₹1,960.
