The IPO of Korean car manufacturer Hyundai Motor India has opened today i.e. from October 15. This is the largest IPO in the country. Earlier, the record for the largest IPO was held by LIC, which came up with an issue of ₹20,557 crore. Hyundai's issue size is ₹ 27,856 crore.
However, the track record of returns for large issue size IPOs has not been good. So far 5 out of 6 mega IPOs worth at least ₹10,000 crore have had negative listings. Not only this, investors who did not sell shares in the hope of upside are also at a loss.
Paytm and 5 other mega IPO investors are still in losses
The IPO of Life Insurance Corporation of India came in May 2022 and was subscribed twice. Investors lost 8% on the day of listing. Paytm's IPO was for Rs 18,300 crore, which was also the largest issue at that time. The share was 27% below the issue price on the day of listing. Even now, the investors who have been in it since the time of IPO are still losing money.
Coal India is the only exception to this list
The only exception to this list is Coal India's Rs. 15,199 crore IPO, which returned around 40% on the day of listing. At the same time, it is currently trading at around 96% above its IPO issue price.
Hyundai Motor India gives the IPO a 12 brokerage subscribe rating
According to an ET report, 12 brokerages have given Hyundai Motor India's IPO a subscribe rating considering stable growth prospects amid favorable industry conditions, strong financials and a healthy SUV product slate. ICICI Direct analyst Shashank Kanodia said – We expect limited listing profits in this IPO. However, there may be good returns in the long run.
Investors can bid till October 17
The Initial Public Offer i.e. IPO of Hyundai Motor India Limited will open tomorrow. Investors can bid for this issue till October 17. The company's shares will be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on October 22.
The company intends to raise ₹27,870.16 crore through this issue. For this, existing investors of the company are selling 142,194,700 shares worth ₹ 27,870.16 crore through Offer for Sale i.e. OFS.
What is the minimum and maximum amount that can be invested?
Hyundai Motor India Limited has fixed the issue price band at ₹1865-₹1960. Retail investors can bid for a minimum of one lot i.e. 7 shares. If you apply for 1 lot as per IPO upper price band of ₹1960, you have to invest ₹13,720.
While retail investors can apply for a maximum of 13 lots i.e. 98 shares. For this, investors have to invest ₹192,080 as per the upper price band.
Hyundai Motor India will be the fourth largest listed auto company
Hyundai Motor will be the fourth largest company to list on the Indian stock market. It will be the fourth largest automobile company after Maruti-Suzuki, Tata Motors, Mahindra & Mahindra. Hyundai Motor India is the second largest car company in the country after Maruti.
Automaker's first IPO in India in 20 years
The IPO will be the first initial public offering of an automaker company in India in 20 years. Before this, Maruti Suzuki's IPO came in 2003. Hyundai is the second largest car manufacturer in the country after Maruti Suzuki India.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
