Tue Oct 15 11:03:55 UTC 2024: ## Hyundai Motor India IPO Opens for Subscription, GMP Falls to Rs 50

**New Delhi:** Hyundai Motor India Limited (HMIL) has opened its Initial Public Offering (IPO) for subscription, making it the largest IPO in India surpassing the record set by LIC. The South Korean auto giant’s Indian unit aims to raise ₹27,870.16 crore through the IPO, which is open for subscription from October 15th to 17th.

The IPO has a price band of ₹1,865 to ₹1,960 per equity share with a face value of ₹10. The lot size comprises seven shares, meaning retail investors will have to invest at least ₹13,720. The shares are expected to be listed on BSE and NSE on Tuesday, October 22, 2024.

However, the IPO has been met with lukewarm enthusiasm, largely due to the declining Grey Market Premium (GMP). The GMP initially stood at around ₹1,200 but has fallen to around ₹50, representing a drop of over 90% compared to the last week of September.

Despite the low GMP, many brokerages recommend subscribing to the IPO for long-term investment purposes. They highlight Hyundai’s strong market share and potential for future growth, particularly as the auto sector is expected to rebound.

Hyundai has already raised ₹8,315 crore from anchor investors on Monday. It allotted 4.24 crore shares to 225 funds at the upper end of the price band, ₹1,960 per share. Notable anchor investors include Singapore’s sovereign wealth fund (GIC), New World Fund, and Fidelity. The allocation also includes 21 domestic Mutual Funds (MF) such as ICICI Prudential MF, SBI MF, and HDFC MF, which had applied through 83 schemes.

While the IPO is expected to be a success, investors should consider the valuation compared to other major players in the Indian auto market such as Maruti and Tata Motors before making an investment decision.

Read More