Hyundai Motor IPO: Hyundai Motor India IPO has not received a very good response from retail investors. On the third day, this IPO in this category was filled only 50 percent. This is the worst performance among the 5 big IPOs in the Indian market so far. According to the report of Economics Times, the country’s second largest IPO LIC got 1.61 times subscription in the retail category, Paytm and Coal India got 1.27 and 2.21 times subscription respectively. Let us tell you, Hyundai’s IPO was the biggest IPO in the history of the country. Investors who had placed bets are now waiting for the listing.
Why did small investors stay away from Hyundai IPO?
The size of the IPO of this giant motor company was Rs 27,870 crore. Hyundai Motor’s IPO was subscribed 2.37 times due to bets from institutional investors on the last day. Due to falling GMP and high valuation, retail investors were seen staying away from Hyundai Motor’s IPO. At the same time, most of the experts were advising to invest keeping the long term in mind. Due to which investors did not see any big benefit immediately.
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The money raised from the IPO will go to Hyundai’s parent company. This IPO was completely based on offer for sale. At present, Hyundai is the second largest car manufacturing company in the country. Hyundai currently has a total of 13 models. The company has two manufacturing centers in Chennai. Whose combined capacity is 8.24 lakh units annually.
How is the financial condition of Hyundai?
The company’s revenue during the June quarter was Rs 17,344 crore. In the same quarter a year ago, the company had generated a revenue of Rs 16,624 crore. 76 percent of the company’s entire revenue comes from the domestic market and 24 percent from exports. Hyundai also has its eyes set on the markets of Arab countries.
What is the condition of gray market?
According to the report of Investors Gain, the company’s IPO is trading at Rs (- 32) today in the gray market. Which cannot be called a good thing from the investors’ point of view.
(This is not investment advice. The stock market is subject to risks. Consult experts before making any investment.)
