Hyundai IPO Day 3 Live Update: Exciting Surge as Issue Hits 2.30x Subscription, Yet GMP Plummets on Final Day!

The Hyundai Motor India IPO, launched on October 15, 2024, concluded on October 17, 2024. The IPO’s initial days received a lukewarm response, garnering only 42% subscription on its second day. Retail investors contributed 38% subscription, while non-institutional investors and qualified institutional buyers (QIBs) subscribed at 26% and 58%, respectively. During the bidding’s final day, the IPO oversubscribed 2.30 times, witnessing bids for over 22 crore shares against the 9.97 crore shares available. Retail investors subscribed 47%, non-institutional investors 54%, and QIBs a robust 6.83 times.

Hyundai’s share price ranged between ₹1,865 and ₹1,960 per share. Analysts, like Motilal Oswal Financial Services, advised long-term subscriptions, citing Hyundai’s strong SUV market presence and expansion into electric vehicles. Bajaj Broking viewed the issue as fully priced but noted the bright prospects post-ongoing expansions. Meanwhile, Canara Bank Securities recommended subscribing despite the premium valuation due to Hyundai’s high return ratios.

The offering, an Offer for Sale (OFS) rather than new equity, drew diverse opinions on its market potential. The company enjoys a strong market presence as India’s second-largest auto OEM and passenger vehicle exporter. It plans to capitalize on market trends by expanding its premium and EV offerings. As a fully-owned subsidiary of Hyundai Motor Company, Hyundai Motor India benefits from extensive support and expertise. Despite a high valuation, the IPO attracted long-term interest due to Hyundai’s robust market footing and strategic future plans.

Original Story https://www.livemint.com/market/ipo/hyundai-ipo-day-3-live-update-issue-sees-slow-momentum-gmp-falls-on-last-bidding-day-11729133088698.html
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