Wednesday, November 13, 2024
HomeBusinessHyundai Motor India's IPO opens today: Biggest issue ever, investors lose in 5 out...

Hyundai Motor India's IPO opens today: Biggest issue ever, investors lose in 5 out of 6 mega IPOs

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.

See also  Sensex falls over 450 points: Nifty also falls 150 points, FMCG sector biggest loser

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.

See also  Hyundai Alcazar Launched with Level-2 ADAS Features: Over 70 Safety Features in Updated SUV; Pricing starts at ₹14.99 lakh, which competes with the Tata Safari

Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).

Frontpage Insights
Frontpage Insightshttps://frontpageinsights.online
At Frontpage Insights, we understand that staying informed is essential in today’s fast-paced world. That’s why we are committed to bringing you news that matters, with a focus on delivering breaking news, in-depth analyses, and insightful commentary on a wide range of topics. Our diverse coverage spans categories such as WORLD, TOP STORIES, ECONOMY, BUSINESS, SCIENCE, HEALTH, SPORTS, LIFESTYLE, and ENTERTAINMENT, ensuring that our readers have access to a well-rounded perspective on global events.

Similar Articles

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Discover more from Frontpage Insights

Subscribe now to keep reading and get access to the full archive.

Continue reading