Following the announcement of the price band, the company’s GMP is steady at Rs 147 in the grey market. Considering the upper price band of Rs 1,960, the stock is expected to fetch marginal gains of 7% if the current trends are sustained.
The GMP, which was hovering around Rs 570 in the last week of September, fell to Rs 360 last week. The downtrend continued through this week as the grey market price fell below Rs 200.
From the high, the GMP was almost down 72%.
However, it is important to note that grey market premiums are just an indicator as to how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.
The IPO aims to raise over Rs 27,000 through an offer for sale (OFS) of up to 14.2 crore shares, valuing the automaker at up to Rs 1.6 lakh crore in the country’s biggest stock offering this year.This IPO will make Hyundai Motor India the first automaker to go public in two decades, following Maruti Suzuki’s listing in 2003. It comes at a time when Indian stock markets have hit record highs and several companies are making their stock market debuts.In FY24, Hyundai Motor India is India’s second-largest carmaker after Maruti Suzuki in terms of passenger sales volumes. The Indian unit ended FY23 with revenue of Rs 60,000 crore and profits of Rs 4,653 crore, the highest among non-listed car manufacturers in the country.
Kotak Mahindra Capital, Citigroup Global, HSBC Securities, JP Morgan, and Morgan Stanley are the book-running lead managers to the issue, while KFin Technologies is the registrar to the offer.
The company is expected to finalize its IPO allotment by October 18, with the tentative listing date set for October 22. The equity shares are proposed to be listed on both the NSE and BSE.