Hyundai India stock is expected to make a lukewarm stock market debut on Tuesday, October 22, as indicated by its gray market premium. In the gray market, which is also known as IPO futures market, Hyundai India shares were being offered at a premium of Rs 67, market analysts said. A premium of Rs 67 per share indicates that Hyundai India shares will open at Rs 2,027 tomorrow at 10:00 am, when the shares will open for public trading, indicating an upside of 3.4 per cent.
However, analysts added that given Hyundai India’s sale of shares through an initial public offering ( IPO ) was the highest on record for Indian capital markets, the share price would have been tepid as demand for Hyundai India shares, especially among non-institutional investors and retail investors, showed a weak response to the IPO.
“Hyundai Motor India Limited IPO received a decent 2.3x subscription, with a full subscription achieved on the last day. The valuation of the IPO appears to be fully priced in and since the issue is an offer for sale (OFS), the company will not receive any benefit from the offer,” said Shivani Nyati, head of wealth at Swastika Investmart Ltd.
“While Hyundai Motor India maintains a strong market position as India’s second largest passenger vehicle company and its strategic focus on SUVs is promising, the overall market sentiment and IPO Size may limit listing gains,” Nyati said, adding that investors with a long-term outlook and the ability to weather potential listing challenges may consider holding onto their investments post-listing for possible future growth.
“We anticipate a stable debut and while immediate share price gains may be modest, Hyundai’s strong fundamentals make it an attractive long-term investment,” Nyati said.
Hyundai India raised Rs 27,860 crore in India’s largest share sale through IPO after Life Insurance Corporation of India raised Rs 21,008 crore in 2022. The company sold shares in the price range of Rs 1,865-1,960 per share and a retail investor was able to bid for a minimum of one lot of seven shares up to a maximum of 14 lots.
He IPO was in high demand among qualified institutional buyers as the pie reserved for them was reserved seven times, while the slices for retail and non-institutional investors were reserved 60 percent and 50 percent each, respectively.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.