Mon Oct 14 08:43:07 UTC 2024: ## Hyundai Motor IPO: India’s Biggest IPO, But Listing Day Gains Uncertain

**New Delhi, October 10, 2024:** Hyundai Motor India’s upcoming IPO, set to launch next week, is poised to become the largest Initial Public Offering in the history of the Indian stock market. The company plans to raise a staggering ₹27,870 crore by offering shares at ₹1865-1960 each. However, despite the record-breaking size, investors might not see significant listing day gains.

The grey market premium (GMP) for Hyundai Motor shares is currently at ₹147, indicating a modest 7% premium over the issue price. This suggests that investors might not reap substantial profits on the day of listing.

**Looking at Past IPOs:**

Analyzing the performance of companies that raised ₹10,000 crore or more through IPOs reveals a mixed bag.

* **LIC:** The government-owned Life Insurance Corporation of India (LIC), which held the previous record for the largest IPO at ₹21,008 crore, saw a disappointing 7.79% drop on listing day.
* **Paytm:** One 97 Communications Ltd, the parent company of Paytm, faced a major setback, with its shares plunging 27% on their debut.
* **Coal India:** In contrast, Coal India, the largest state-owned coal company, experienced a strong listing performance with a 40% jump on its IPO day.
* **Reliance Power:** Anil Ambani’s Reliance Power witnessed a disappointing debut, trading at a 17% discount to its issue price.
* **GIC:** The General Insurance Corporation of India (GIC), a public sector insurance company, saw an 11% dip on its listing day.
* **SBI Cards:** SBI Cards & Payment Services, a subsidiary of the State Bank of India, suffered a 9% drop on its IPO day, likely due to the impact of the COVID-19 pandemic.

**The Takeaway:**

While Hyundai Motor India’s IPO holds the potential for growth, its listing day performance remains uncertain. The past performance of large IPOs has been varied, with only Coal India delivering significant listing gains. Investors will need to carefully consider the risks and potential rewards before deciding to invest in the Hyundai Motor IPO.

Read More