Hyundai Motor India Ltd (HMIL) is set to list its shares on the BSE and NSE on October 22, following a 237 percent subscription for its Rs 27,870-crore IPO. While the retail response to the offering was subdued, strong demand from Qualified Institutional Buyers (QIBs) helped boost the overall subscription.
The QIB portion of the IPO was oversubscribed by nearly 700 percent, or 6.97 times, which compensated for the weak retail interest. Despite initial concerns, the shares showed signs of recovery in the grey market, rebounding to a premium of Rs 95 a day before listing, suggesting a potential listing gain of around 5 percent.
The IPO had a price band set between Rs 1,865 and Rs 1,960 per share. Retail investors showed hesitation due to concerns about high valuations, declining grey market premiums, and weaker demand in the auto sector, particularly during the festive season.
Hyundai Motor India, the Indian subsidiary of the South Korean automaker, began its operations in 1996 and currently offers 13 models across various segments in the country. The company hopes the listing will enhance its visibility and brand presence.