The Grey Market Premium (GMP) for Hyundai Motor India’s IPO has dropped significantly, standing at just ₹17, indicating a potential 0.87% listing gain at ₹1,977 compared to the IPO price of ₹1,960. This decline in GMP reflects the lukewarm investor sentiment towards the largest IPO in India’s history.
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On its final day, the IPO has seen only 46% subscription. Despite its massive size, Hyundai’s offering hasn’t generated the same excitement as recent public issues, many of which were heavily oversubscribed, leaving investors cautious.
Qualified Institutional Buyers (QIBs) have subscribed to only 65% of their reserved shares, while Non-Institutional Investors have subscribed 29%. Retail investors have shown limited interest, with 41% subscription, and only the employee portion has been oversubscribed so far.
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Although GMP is not always a reliable predictor of listing day performance, the drop aligns with analysts’ concerns about the IPO’s valuation. The question remains for potential investors: should they subscribe or hold off given the tepid response?