Hyundai Motor India, a subsidiary of South Korean auto giant Hyundai Motor, is set to make its stock market debut on Tuesday, October 22, marking a historic moment in the Indian stock market. The company’s shares will begin trading after successfully completing a $3.3 billion IPO subscription process last week, which has drawn significant attention from investors and analysts alike.Simla Stock

This IPO is considered as the largest in Indian stock market history, surpassing the Life Insurance Corporation of India’s (LIC) 2022 record. The LIC IPO raised $2.5 billion, while Hyundai Motor’s raised a record-breaking $3.3 billionHyderabad Investment. The price band for the Hyundai Motor India IPO has been set between Rs 1,865 and Rs 1,960 per share. This is Hyundai Motor’s first listing outside South Korea.

The IPO is structured as a pure offer for sale (OFS), meaning the entire proceeds from the public offering will go to the promoter. A total of 141,416,300 equity shares were issued, with specific allocations made to different categories of investors. Retail investors were allocated 49,495,705 shares, Qualified Institutional Buyers (QIBs) received 28,283,260 shares, and Non-Institutional Investors (NIIs) were given 21,212,445 shares.

The IPO was overall subscribed 2.37 times by the close of bidding on October 17, 2024, the third and final day of the subscription. While retail investors subscribed to only 0.50 times their allocated portion, QIBs showed robust interest, subscribing 6.97 times. NIIs subscribed to 0.60 times the shares allocated to them.

As of October 21, Hyundai Motor India shares were attracting a premium of nearly 4% in the unofficial market, indicating strong investor interest. This is a notable improvement from the discount seen a few days earlier. The Grey Market Premium (GMP) for the stock currently hovers between Rs 35 and Rs 37. Based on the price band of Rs 1,960, the stock is expected to list at approximately Rs 1,997, reflecting a modest premium of about 1.89%.

Hyundai Motor India is the second-largest carmaker in the Indian market, following Japan’s Maruti Suzuki. The company’s IPO has raised interest in how it will leverage the funds to enhance its competitiveness in one of the world’s largest automobile markets.