Hyundai India IPO: A day before listing, shares show signs of recovery in grey market

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

Retail reaction to the South Korean automaker’s first public offering (IPO) was tame for Hyundai Motor India, its Indian affiliate. Nonetheless, the oversubscription of the QIB part by approximately 700 percent, or 6.97 times, was accounted for by the robust demand from QIBs.

The company’s grey market premium (GMP), which was very volatile, was also the biggest initial public offering (IPO) in Indian history. Platforms monitoring GMP trends indicate that, after a peak of Rs 570 in late September, the premium for Hyundai Motor India’s shares fell precipitously into negative territory last week.

But on the gray market, a day before to its formal offering, the shares showed signs of life, rising to a premium of Rs 95, suggesting a possible five percent listing gain.

The pricing range for each share in the IPO is Rs 1,865–1,960.

Because of worries about excessive valuation, a decline in the share premium on the grey market, and generally low demand for cars over the holiday season, retail investor demand remained slow.

According to the corporation, listing the equity shares would improve its brand recognition and visibility while also giving the shares liquidity and access to a public market. Since starting business in India in 1996, HMIL has sold 13 different models in various sectors.