The much-anticipated initial public offering (IPO) of Hyundai India has garnered significant attention, with a subscription rate of 42% as of the second day of bidding. This IPO, valued at ₹27,870 crore, opened for subscription on Tuesday and has seen a strong response, particularly from retail investors.
Subscription Breakdown
As of the latest updates, the Hyundai India IPO has received over 4.17 crore bids against the 9,97,69,810 shares available for subscription. The participation from different investor categories highlights the growing interest in the automotive sector.
- Retail Investors:
- Subscribed 38% of the available shares.
- Non-Institutional Investors:
- Accounted for 26% of the subscriptions.
- Qualified Institutional Buyers (QIBs):
- Attracted 1.63 crore bids, representing 58% of their reserved shares.
This diverse interest indicates a healthy appetite for Hyundai’s shares, reflecting confidence in the company’s long-term growth prospects.
GMP Trends and Market Sentiment
Despite the positive subscription figures, the grey market premium (GMP) for the Hyundai India IPO has seen a decline, currently standing at 1.6%. This drop in GMP could signal a shift in market sentiment, as investors weigh the potential for future gains against current market conditions.
- Current GMP:
- 1.6%, down from previous levels.
- Price Range:
- The IPO is priced between ₹1,865 and ₹1,960 per share.
The falling GMP may raise concerns among potential investors, as it often reflects the market’s expectations for the stock’s performance post-listing. However, the strong subscription numbers suggest that many investors remain optimistic about Hyundai’s future.
Looking Ahead
With the IPO still open for subscription, all eyes will be on the final numbers as the bidding period progresses. The interest from retail and institutional investors could play a crucial role in determining the overall success of this IPO.
As Hyundai India prepares to enter the public market, the company aims to leverage this capital to enhance its operations and expand its footprint in the competitive automotive landscape. Investors will be keenly watching how the market reacts in the coming days, especially in light of the current GMP trends.
