Data of primedatabase.com showed that retail subscription to India’s mega IPOs is generally moderate, which is not the case for other smaller issues. For LICthe second largest IPO, the retail category registered 1.61 times.
The public offers of pay and India CoalFor its part, it registered a subscription of 1.27 and 2.21 times, respectively.
Hyundai India’s Rs 27,870 crore IPO took place on the last day of the bidding process with 2.37 times subscription, thanks to institutional investors.
Expensive prices dampened sentiment toward Koreans. car manufacturerIndia’s India IPO as the company was valued at a PE of 26 times its FY25 earnings, much higher than the industry average of 24.41 times. It remains to be seen what investor appetite will be in the secondary market once trading begins in October. 22. GMP is zero on the gray market. Most analysts advised investors to subscribe to the issue by subscribing to Hyundai IPO only in the long term, since the company has left nothing for investors to make quick profits.
Also read: Hyundai India avoids scare as IPO booked 2.37 times in last day, but GMP dips to 0
Since the IPO is an SFO, all proceeds will go to the selling shareholder.
Although all proceeds from the IPO will go to the parent company, management said the funds will be used for research and development and innovative new offerings.
Hyundai is India’s second largest automaker with a portfolio of 13 passenger vehicle models across sedans, hatchbacks and SUVs. The company aims to leverage its strong local manufacturing capabilities to position itself as Hyundai Motor’s largest production base in Asia.
It operates two manufacturing facilities in Chennai with a combined installed capacity of 8.24 lakh units per annum and is currently operating at over 90% capacity utilization.
For the quarter ended June 2024, the company reported revenue of Rs 17,344 crore, up from Rs 16,624 crore in the same period last year. Of the total income, 76% came from the domestic market, while exports represented 24%.
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