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Hyundai IPO: The country's biggest IPO is coming next week, which will break the records of IPOs like LIC, Paytm and Coal India. The IPO will open for subscription on October 15 and close on October 17. The company has announced a price band of Rs 1865-1960 per share under this IPO.
Talking about the size of Hyundai IPO, its price is Rs 1.5 lakh. 27870.16 crore, making it bigger than the IPO of the country's largest insurance company LIC, which was valued at Rs 21000 crore. Under this IPO, the company has fixed October 18 for the allotment process and October 21 for the refund process. The listing of its shares is going to happen on October 22.
Big fall in Hyundai IPO GMP
Hyundai is off to a bad start in the gray market even before its IPO. There is a huge decline in the GMP of this auto sector company. Since the size and price band of the IPO was decided, its gray market premium has been continuously declining and has fallen by about 80 percent. Its GMP has fallen from Rs 570 in the last days of September to Rs 75 on October 12.
How much reserve for whom?
Hyundai has reserved 50 per cent of the issue for qualified institutional buyers, 15 per cent for non-institutional investors and 35 per cent for retail investors. The allotment of shares under the IPO will be completed on October 18. Then there will be entry on BSE and NSE on 22nd October. Under this IPO, 14,21,94,700 shares of face value of Rs 10 will be issued under the offer for sale window and these shares will be sold by its parent company.
What should investors do?
Seeing the reduction in GMP of Hyundai IPO, the question in most people's mind is what should be done now? In such a situation, some experts say that it looks quite strong financially. In such circumstances investment can be made. However, investors should invest only after thoroughly understanding all the factors including their risks and fundamentals.
After two decades, the automaker's IPO
Based on passenger vehicle sales volume, Hyundai Motor India Company is projected to be the second largest in the country after Maruti Suzuki in FY2024. The market cap of Maruti Suzuki is around $48 billion. Maruti Suzuki's IPO came in 2003. In such a situation, the IPO of an auto manufacturing company is coming in India after 20 years and its size is bigger than the biggest IPO of the country till date. Hyundai Motor India aims to achieve a valuation of between $18 billion and $20 billion through the IPO.