Hyundai Motor India IPO Day 3 Update: QIB Portion Fully Subscribed, Overall Subscription at 89%, GMP Drops to ₹15

As the third and last day of bidding for Hyundai Motor India IPO comes to an end, the IPO has raised a good volume of interest within the stock market of India. As per recent statistics, the IPO has received an 89% response which is good considering there is still time as the final stage to the IPO hasn’t been reached yet, and the QIB portion has also been completely filled up. The IPO could be recommended for all types of participants, although it is worth emphasizing that the Grey Market Premium (GMP) has ebbed to ₹15 which is rather different from the average, suggesting a poor attitude towards optimism of quick returns in future.

Key Details of the Hyundai Motor India IPO

• IPO Open Date: October 15, 2024
• IPO Close Date: October 17, 2024
• Lot Size: 20 shares
• Price Band: ₹515 – ₹540 per share
• Issue Size: 141,416,300 equity shares, aggregating up to ₹27,717.59 crore
• Retail Quota: 35% (49.5 million shares)
• QIB Quota: 50% (28.3 million shares)
• NII Quota: 15% (21.2 million shares)

In the case of Hyundai, this IPO is likely to be in demand as it is projected to begin trading on the BSE and NSE probably on October 22, 2024. One area of concern for retail companies in particular is the price. At the far end of the range, one lot (20 shares) costs about 10,800 rupees.

Day 3 Subscription Summary

As noticed on the third day, there has been a very positive response on subscription, especially from the institutional investors for the IPO of Hyundai Motor India. Here are the subscription figures: 

• QIB Portion: Fully subscribed at 100%. Indicates a good chunk of demand from Mutual Funds, Financial Institutions, and foreign institutional bodies.

• Retail Individual Investors (RII): This has been performing steadily, but still under-subscribed which has helped the overall subscription figure to reach 89%. Retail investors in most cases are considered as being more conservative than the institutional investors especially during high-value IPOs such as that of Hyundai.

• Non-Institutional Investors (NII): The NII portion has registered good traction but not yet fully subscribed. Mostly bids of larger amounts are expected from this category comprising high net worth individuals (HNIs).

GMP Falling Need Investors to be Cautious

Even though the IPO has been successful amongst the higher institutions, the grey market premium of the shares stood at ₹15 down from previously approximately ₹30. The GMP is the price which investors agree to pay for the stocks in the grey market before equity gets officially listed. A fall in the GMP could mean Lack of confidence in the IPO or there is an apprehension of the immediate listing gains from it. Also, gout market price number is provided here to help the public always understand the context of the terms ‘market price’ and ‘actual price’. 

Hyundai Motor India: Take it Over the World

Hyundai Motor India is the country’s second-largest car manufacturer and a subsidiary of the strongly known automobile arm Hyundai Motor Company. Since its formation in the country, the company has been doing well here with popular models like Hyundai Creta, i20 and venue helping the company grow. Hyundai has also offered electric vehicles in the form of models such as the Kona Electric to meet and satisfy people’s increasing desire for such environmentally friendly cars. 

Hyundai Motor India with the ambition of growing its footprint in the polycarbonate begins the process of going public to raise capital required for its expansion that will allow it to expand competitively. So, the proceeds would help the firm raise money for upgrading its facilities, broaden their product range and invest in modern practices. 

Should You Invest?

For serious investment, one must always focus on the fundamentals of the business but also on the general state of the market as well. In the automotive industry, Hyundai Motor India stands head and shoulders above the rest with products that span the spectrum along with some market and strong brand presence. Nonetheless, the decline in the GMP means that the listing gains in the short term may not be necessarily huge and rather investors need to look at prospects of the firm in the long term. 

Experts advise retail investors to take the growth of the company’s electricity vehicles especially and other strong fundamentals and market position into account. However, the behavior of the retail investors having been low and the GMP reducing will act as a word of caution to ensure they have a good risk appetite before placing a bid. 

Conclusion

There was full subscription from QIBs and by Day 3 a total of 89% subscription overall was reached, which goes to show the success of the Hyundai motor india IPO to the institutional investors. Seeing a decline to ₹15 in the GMP would probably suggest a bearish sentiment amongst the market, but the future of Hyundai motor India specifically in the EV category is bright. Retail investors ought to be concerned about the company’s fundamentals as they make up their minds to invest. 

The IPO is ending today and if any investor is thinking of going for a bid then they should be fast in order to secure the best price. October 18 2024 – this is the date when allotment details should be known and October 22 expects approval for shares to be listed. More updates are due in the future.

For more details on the Hyundai Motor India IPO, visit the official NSE IPO page and follow IPO Watch.