IPO: Hyundai Issue Opens Today, Check GMP Before Placing Bids For Subscription

The IPO comprises a complete offer-for-sale (OFS) component and is being offered by parent company, Hyundai Motor Co. It is priced in the range of Rs 1,865 to Rs 1,960 per share

Hyundai Motor India is all set to open the largest initial public offering (IPO) seen in the country to the public today. The automaker will start accepting bids for subscription on Tuesday and close the maiden issue on Thursday.

Priced in the range of Rs 1,865 to Rs 1,960 per share, the automaker's valuation stands at Rs 1.6 lakh crore. The IPO comprises a complete offer-for-sale (OFS) component and is being offered by parent company, Hyundai Motor Co. 

GMP

Despite being touted as the largest IPO seen in the Indian stock market after the Life Insurance Corporation of India (LIC) issue in 2022, market sentiment towards the maiden listing seems to be dampened. On Tuesday morning, the issue commanded a grey market premium of under 5 per cent. This indicated that investors anticipate a weak debut for the automaker in the stock market.

The grey market runs parallel to the stock market and allows investors and traders to place their orders for issues before official trading begins in the share market. The grey market premium is a great indicator to understand the sentiment in the market and investors' outlook towards an issue.

Anchor Investors

Prior to the listing, the firm raised Rs 8,315.3 crore from its IPO via 225 anchor investors. The company, a part of the Hyundai Motor Company, based out of South Korea, saw major global investors partake in the round. 

These included global names such as New World Fund Inc, Monetary Authority of Singapore, Government of Singapore, Government Pension Fund Global, Fidelity, and American Funds Insurance Series New World Fund, which collectively infused Rs 2,191.66 crore in the automaker, reported Moneycontrol.

The anchor investors were allotted 4.2 crore equity shares priced at Rs 1,960 apiece. Other investors that became a shareholders in the company via anchor book included City of New York Group Trust, Moorea Fund, Baillie Gifford, Vanguard, Blackrock, Schroder, Canada Pension Plan Investment Board, Aegon Investment Management, J P Morgan, Goldman Sachs, Societe Generale, Eastspring Investments, Copthall Mauritius, Morgan Stanley, HSBC Global, Abu Dhabi Investment Authority, and Citigroup Global.

[Disclaimer: Investing in the stock market involves financial risks. Please invest responsibly and only after thorough research and careful consideration. Reader discretion is advised.]

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