The Hyundai Motor India Initial Public Offering (IPO) has concluded with a subscription of 2.37 times, marking a significant milestone in the company's journey towards becoming a publicly traded entity. This article provides an in-depth look at the allotment status, subscription details, and other key aspects of the IPO.
The IPO, which opened on October 15, 2024, and closed on October 17, 2024, aimed to raise Rs 27,856 crore, making it the largest public offering in India's history. Despite initial hesitation from investors, the issue gained traction on its final day, driven largely by Qualified Institutional Buyers (QIBs).
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1. Subscription Details
The subscription status of the Hyundai Motor India IPO was a mixed bag. While the overall subscription was 2.37 times, the Qualified Institutional Buyers (QIBs) segment led the charge with a subscription of 6.97 times. In contrast, the retail category saw poor participation, with a subscription of just 0.50 times, and non-institutional investors (NIIs) subscribed at 0.60 times.
For detailed subscription data, refer to this article.
The employee quota was fully subscribed at 1.74 times, indicating strong interest from Hyundai's own workforce. However, the retail segment saw the worst participation among India's five biggest IPOs, with a subscription rate of just 50%.
For more insights on retail subscription, refer to this article.
2. Allotment Status
The allotment status for the Hyundai Motor India IPO is expected to be finalized on Friday, October 18, 2024. Investors can check their allotment status through KFin Technologies Limited, the official registrar for the issue, or on the Bombay Stock Exchange (BSE) website.
For step-by-step instructions on how to check the allotment status, refer to this article.
To check the allotment status online, investors need to visit the registrar's website, click on 'Company Selection' and then select 'Hyundai'. They can then enter their PAN number, application number, DP/Client ID, or account number/IFSC and click on 'Search'.
For detailed instructions on how to check the allotment status on the BSE or NSE website, refer to this article.
3. Listing Date and Grey Market Premium
The shares of Hyundai Motor India are expected to be listed on both the BSE and NSE on Tuesday, October 22, 2024. The grey market premium (GMP), which indicates the potential listing price of a stock, has been a topic of interest among investors.
As of October 17, 2024, the GMP stood at Rs 0, indicating no premium over the issue price. With a price band of Rs 1,960 per share, the estimated listing price remains at Rs 1,960, meaning no immediate gains are expected for those looking for a quick profit on the listing day.
For more insights on the GMP and its implications, refer to this article.
The decline in GMP reflects the cautious approach of investors towards the IPO. Despite the significant size of the offering, the initial days saw slow momentum, which picked up only on the final day. This indicates that while there is interest in Hyundai Motor India, it is largely driven by strategic investors rather than speculative ones.
For detailed analysis of the GMP and its implications, refer to this article.
4. Market Outlook and Future Prospects
Hyundai Motor India is one of the leading automobile manufacturers in the country, with a strong track record of consistent growth and regular dividends. The company is focused on expanding its capacity, launching new products, and targeting premium segments in the domestic market.
These efforts are expected to drive growth in the coming years, with plans to introduce new electric vehicles (EVs) and expand its production capacity indicating a commitment to long-term growth in India.
For more insights on Hyundai's market outlook and future prospects, refer to this article.
However, there are also concerns about Hyundai's short to medium-term prospects. The passenger vehicle (PV) industry is expected to grow at a slower pace of 4.5%-6.5% over FY24-29 compared to 5% in the previous five years, according to CRISIL. Additionally, Hyundai's presence in electric vehicles (EVs), hybrids, and CNG cars is limited, making up just 11% of its portfolio.
These factors could dampen its listing performance in the near future, making it essential for investors to carefully evaluate the company's strategy and market position before making any investment decisions.
For detailed analysis of these concerns, refer to this article.
In conclusion, the Hyundai Motor India IPO allotment status is a significant event in the company's history. While the subscription numbers indicate strong interest from strategic investors, the retail segment's poor participation highlights the need for broader investor engagement. As the shares prepare to list on October 22, 2024, investors must carefully consider the market outlook and future prospects of Hyundai Motor India.
