Korean car manufacturer Hyundai Motor India's ₹27,856 crore IPO is opening tomorrow i.e. on October 15. This is the largest IPO in the country. Earlier, the record for the largest initial public offer was in the name of LIC, which had brought an issue of ₹ 20,557 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 on Dalal Street have had negative listings. Not only this, the investors who did not sell the stock expecting a rise are also in loss.
Paytm and other 5 mega IPO investors still in loss
The IPO of Life Insurance Corporation of India came in May 2022 and was subscribed 2 times. Investors suffered a loss of 8% on the day of listing. Paytm's IPO was worth Rs 18,300 crore, which was also the largest issue at that time. The share had fallen 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 in loss.
Coal India is the only exception in this list.
The only exception in this list is Coal India's Rs 15,199 crore IPO, which gave returns of about 40% on the day of listing. At the same time, it is currently trading about 96% above its IPO issue price.
12 brokerages give subscribe rating to Hyundai Motor India IPO
According to ET report, 12 brokerages have given subscribe rating to Hyundai Motor India's IPO given the prospects of stable growth amid favorable industry conditions, strong financial position and healthy SUV product slate. ICICI Direct analyst Shashank Kanodia said – We expect limited listing profit in this IPO. However, one can get good returns in the long run.
Investors will be able to bid till October 17
The Initial Public Offer i.e. IPO of Hyundai Motor India Limited will open tomorrow. Investors will be able to 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 wants to raise ₹27,870.16 crore through this issue. For this, the 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 price band of this issue 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 the upper price band of IPO of ₹1960, then you will have to invest ₹13,720.
At the same time, retail investors can apply for maximum 13 lots i.e. 98 shares. For this, investors will 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 be listed in the India stock market. This 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.
First IPO of an automaker company in India in 20 years
This IPO will be the first initial public offering of an automaker company in India in 20 years. Earlier, Maruti Suzuki's IPO came in 2003. Hyundai is the second largest carmaker in the country after Maruti Suzuki India.
Graphics Source: VaskarAssets
