The country's biggest IPO has been launched, whether it is beneficial to buy or not, know here…

New Delhi. Hyundai Motor India's Rs 27,870 crore IPO opened on October 15 and it has not received a very good response from investors on the first day. Till the time of writing the news on the first day, 18% of the IPO was subscribed, which shows the strong hold of the company in the market and the confidence of investors. In this, retail investors bid for 1.27 crore shares out of 4.94 crore shares, due to which 26% of the retail segment was booked. At the same time, the share of non-institutional investors (NII) was subscribed 13%, in which bids were made for 26.67 lakh shares. The share set aside for employees was subscribed 77%, which shows their confidence in the company. Only 5% of the portion set aside for qualified institutional buyers (QIBs) could be subscribed.

Even before its IPO launch on October 14, Hyundai Motor India had raised Rs 8,315.3 crore from 225 anchor investors. This anchor investor list included the Government of Singapore, New World Fund, Fidelity, Abu Dhabi Investment Authority, and many global financial institutions. A total of 4.2 crore shares were allotted in the anchor round at a price of Rs 1,960 per share.

Preparing to create a new record in the market, this IPO of Hyundai is on its way to becoming the biggest in Indian history. This has already raised hopes of breaking the record of the IPO of Life Insurance Corporation of India (LIC), which was the largest IPO till date. Sale of shares under Offer for Sale (OFS) No new shares are being issued in this IPO. Rather, it is completely an Offer for Sale (OFS). Under this process, Hyundai Motor Company (HMC) will sell some of its stake in the Indian market. This is an important step, because through this Hyundai is trying to further strengthen its brand among Indian investors.

Major participation from domestic mutual fundsMany domestic mutual funds like ICICI Prudential, HDFC, SBI, Kotak, Axis, and Aditya Birla Sun Life Mutual Funds participated in the round. All these funds have expressed their confidence in the company by making huge investments in this IPO. The gray market rate of GMP Hyundai Motors India was running at a premium of Rs 45 till the evening of 15 October. On the basis of this GMP, Hyundai shares can be listed at Rs 2015. That means this share can be listed by adding a premium of Rs 55 on the issue price of Rs 1960. In such a situation, investors can currently expect a profit of 2.81 percent. However, its GMP is continuously declining.

On October 4, its GMP was at Rs 370, which has fallen from Rs 270 to Rs 100 and has now reached Rs 45. It has fallen by more than 87 percent since then. Company background and future plans Hyundai Motor India is the second largest car manufacturer in the country and through this IPO it wants to further strengthen its position in the Indian market. The company says that it will invest the profits from the IPO in its development plans, so that new products and services can be offered.

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