Hyundai IPO, India's biggest ever, is now open for subscription
Hyundai Motor India Limited (HMIL) has launched its initial public offering (IPO) today. The public issue will be open for bidding until October 17. The company has fixed the price band for the IPO at ₹1,865 to ₹1,960 per equity share. This issue, poised to be the biggest IPO in India ever, is an offer for sale (OFS), meaning that the net proceeds from the public issue won't be added to HMIL's balance sheet.
Hyundai Motor India aims to raise over ₹27,870 crore
HMIL is looking to raise a whopping ₹27,870.16 crore from this IPO. Notably, as of 10:27am on the first day of bidding, the book build issue had been subscribed 0.03 times. The retail portion of the public issue was booked 0.05 times and the NII portion was subscribed 0.03 times, showing a lukewarm initial interest in HMIL's public offering among investors. Interested investors can bid for one lot of seven shares, and multiples of seven thereafter.
Hyundai Motor India IPO: Expected listing and market premium
The shares from this issue are likely to be listed on BSE and NSE by October 22, as per the 'T+3' listing rule. In the gray market, HMIL shares are trading at a premium of ₹65. This means investors are ready to pay an extra amount over the issue price for these shares before they are officially listed on the stock exchanges.
Hyundai Motor India IPO: Analysts' views and investment advice
Gaurav Garg, Research analyst at Lemonn Markets, has assigned a 'subscribe' tag to the public issue. He noted HMIL's strong financial performance and wide product range as the reason behind the endorsement. Master Capital also suggested a 'buy' tag for the issue, citing HMIL's plans to expand its passenger vehicle portfolio and increase its EV market share. However, Shivani Nyati from Swastika Investment advised only long-term investors to apply as the IPO is fully priced.
