Auto major Hyundai Motor India has launched the country’s largest initial public offering, which will close today. That means today is your last chance to invest in a modern IPO. But as expected, the question didn’t get such a response. The situation is like this. As of press time on the third day, the subscription rate was only 51%. In this case, if you want to invest money in this Rs 27,870.16-crore IPO, then it will be beneficial to check its GMP and other details.
IPO receives lukewarm response on third day
Hyundai Motor India’s IPO will close today. At Rs 27,870.16 crore, it became the country’s largest IPO after the LIC IPO, but it did not seem to get the same response from investors. As of 12 noon on the last day, there were only 0.51 subscriptions for this issue. The offering will be available on October 22 after the market closes on Thursday.
The gray market continues to fluctuate
Talking about the gray market premium for Hyundai’s IPO, the company’s stock price keeps falling in this market. On Thursday, at 10.24 am on the third day of subscription, the GMP price of Hyundai Motor India IPO fell to just Rs 17. If we look accordingly, the country’s largest IPO does not appear to be strong on the stock market. Let us tell you that as per the IPO, the company has fixed the stock price range at Rs 1865-1960.
OFS is a problem, loved by anchor investors
Hyundai India’s IPO did not issue any new shares, but was entirely an offer for sale IPO (OFS IPO). The South Korean-origin car company is selling part of its stake in its wholly-owned subsidiary to retail and other investors only through an “offer for sale.” The IPO has raised Rs 8,315 crore from 225 major investors before it was opened to general investors. Its list of major investors includes the Singapore government, Fidelity Fund, BlackRock Global Fund, JPMorgan Chase Fund, HDFC Life Insurance Company and SBI Life Insurance Company, etc.
Invest at least Rs.
The company has set the lot size for the IPO at 7 shares. That means investors won’t be able to bid for shares below that. Now, if we go by the upper price band, investors have to invest at least Rs 13,720 to bid for at least one lot. At the same time, a maximum of 14 lots or 98 shares can be bid, for which investors have to invest Rs 1,92,080. After that, if your IPO goes public, every profit of the company you share will be guaranteed by the listing itself.
(Note – Always take advice from market experts before making any investment in the stock market or IPO market.)
