The initial public offering (IPO) of Hyundai Motor India Ltd has entered its second day of bidding today, October 16, 2024. The company aims to raise approximately ₹27,870.16 crore through this public issue, which is entirely an offer for sale of 14.22 crore shares from its South Korean parent, Hyundai Motor Company. The IPO commenced on October 15 and will close on October 17.
Current Subscription Status
As of now, the Hyundai Motor India IPO has seen a slow start, with only 18% of the issue subscribed by the end of the first day. This translates to bids for 1.77 crore equity shares against a total offer of 9.97 crore shares, according to data from the National Stock Exchange (NSE). The price band for the IPO has been set between ₹1,865 and ₹1,960 per share.
Market Reception and Expectations
Despite the lukewarm response so far, market analysts remain optimistic about the potential for increased interest as the subscription period progresses. The IPO is significant as it is poised to become one of the largest in India’s history, surpassing the previous record held by the Life Insurance Corporation (LIC) IPO in May 2022.Hyundai’s decision to conduct this IPO is part of its strategy to strengthen its presence in the Indian market, where it has been a key player for over two decades. The company hopes that this move will enhance investor confidence and provide an opportunity for both local and global investors to participate in its growth story.
Key Details
- The IPO is entirely an offer for sale (OFS), meaning that Hyundai Motor India will not receive any funds from this issue.
- The minimum bid size for investors is set at seven shares, with subsequent bids in multiples of seven.
- Notably, 50% of the issue has been reserved for qualified institutional buyers (QIBs), while 15% is allocated for non-institutional investors (HNIs), and 35% for retail investors.
Conclusion: A Watchful Eye on Subscription Trends
As Hyundai Motor India’s IPO continues through its subscription period, investors and market participants are advised to keep a close watch on subscription trends and overall market sentiment. The coming days will be crucial in determining whether interest in this significant offering picks up as anticipated.Disclaimer: The views expressed in this article are solely those of the author and do not reflect the official position or policy of any financial institution. Readers are advised to consult certified experts before making any investment decisions.
