The biggest news on D Street today is that Hyundai Motor IPO that is the largest issue in India has evinced a poor response among investors till day 2, the penultimate day before the bidding process comes to an end on October 17.
Bidding for the Hyundai Motor IPO opened on October 15. The management of the Korean automaker aimed to mop up a humongous amount of Rs 27,870 crore. It priced its shares at Rs 1,865 to Rs 1,960.
Hyundai Motor IPO subscription status
Overall, the Hyundai Motor IPO has been able to garner applications for only 42% of the amount it intends to raise. The retail portion has triggered even less applications – only 38%. While the total number of shares on offer are 98,991,410, applications for 1,93,40,223 till the end of day 2 were received. Only employees of the company applied for more shares than those reserved for them – 10,23,421 applications have been received till October 16 against 778,400 shares put on offer for them.
Hyundai Motor IPO GMP
Hyundai Motor IPO GMP data is a story of free fall. According to investorgain, the GMP on the morning of October 17 stood at a poor Rs 17, which translates into a listing gain of 0.87%, considering a share price of Rs 1,960.
The GMP of Hyundai Motor IPO was recorded at Rs 570 on September 27. But the slide began right after that and reached Rs 17 on October 16. However, it must be borne in mind that GMP is only an unofficial estimate and does not guarantee anything.
Hyundai Motor IPO allotment, listing
Hyundai Motor shares will be allotted on October 18. Listing of the shares of the company will take place on October 22. The shares will be credited to the demat account of applicants on October 21.
Possible reasons
Offering possible factors behind the poor show, investments analysts have pointed out concerns about high valuations. The upper end of the price band of Rs 1,960 indicates 26 times valuation on EPS (on FY24) and about 30 times on FY25 projections, one analyst has told the media. The fact that promoters are selling their shares (OFS) and there is no fresh issue has also not gone down well with investors.
