American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

GMP for Hyundai shares experiences volatility ahead of India IPO listing: should you buy?

by admin October 21, 2024
October 21, 2024
GMP for Hyundai shares experiences volatility ahead of India IPO listing: should you buy?

The much-anticipated Hyundai India IPO is set to debut on October 22, 2024, on the BSE and NSE, following its historic Rs 27,870 crore offer.

While the initial response from retail investors was lukewarm, strong demand from Qualified Institutional Buyers (QIBs) led to an overall subscription of 237%.

As the listing date approaches, the grey market premium (GMP) for Hyundai Motor India shares has experienced significant fluctuations, reflecting investor uncertainty about its market debut.

With Hyundai’s share price in the grey market rebounding to a positive premium just before the listing, all eyes are on its performance.

Hyundai India IPO overview

The Hyundai India IPO, the largest ever in India’s stock market history, saw a muted response from retail investors, with only 50% of the allotted shares being subscribed.

However, the QIB segment oversubscribed nearly seven times, demonstrating strong institutional confidence. Non-institutional investors (NII) showed lower interest, with their portion being subscribed to just 60%.

The company aims to raise Rs 27,870 crore through the offer, pricing shares between Rs 1,865 and Rs 1,960 each, with a minimum bid of 7 shares per lot.

Hyundai Motor India Ltd (HMIL), a subsidiary of South Korean automaker Hyundai Motor Company, plans to enhance its visibility and brand image through this listing.

The automaker has been a dominant player in India, consistently holding the second-largest market share in the passenger vehicle sector. The company’s portfolio boasts 13 models, including best-sellers like Creta and Verna, solidifying its position in the SUV and sedan segments.

Grey Market Premium (GMP) and market sentiment

One of the key factors influencing the IPO’s reception has been the volatility of the grey market premium (GMP).

After initially hitting a high of Rs 570 in September, the GMP for Hyundai shares nosedived into negative territory just days before the listing, causing concerns among investors.

As of October 21, the GMP rebounded to Rs 95, suggesting a possible listing gain of around 5%.

This recovery signals renewed optimism, but the GMP’s unpredictable swings reflect lingering doubts over Hyundai’s valuation and the overall weak demand in the auto sector.

The term “grey market premium” refers to the price investors are willing to pay above the IPO issue price, even though this market operates outside the official stock exchanges.

While the GMP often provides insight into listing day performance, it is not always a reliable indicator.

For Hyundai, the grey market’s fluctuating sentiment could lead to either a modest or muted debut, with the final listing price still uncertain.

Hyundai Motor India’s long-term outlook remains strong

Despite the pre-listing jitters, Hyundai Motor India’s long-term outlook remains strong.

The company continues to be a leader in the Indian auto industry, backed by solid demand for its models like Creta and Verna.

Its Chennai plant, which had an installed capacity of 770,000 units by FY 2023, is expected to play a critical role in meeting future demand as the automaker plans to expand its product lineup in India.

Hyundai Motor India’s IPO listing will be closely watched by investors, with the grey market premium offering mixed signals.

While institutional investors have shown strong support, retail investors remain cautious amid concerns over valuation and broader market conditions. Investors should keep an eye on Hyundai’s share price movement post-listing to assess the stock’s true potential.

The post GMP for Hyundai shares experiences volatility ahead of India IPO listing: should you buy? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
JPMorgan predicts surge in South African IPOs amid rising economic confidence
next post
RBL Bank stock falls 14% to 52-week low after 24% Q2 profit drop: should you buy?

Related Posts

AMD stock price could surge by 33%, but...

October 5, 2024

Temu retains top spot on US iOS downloads...

December 17, 2024

IndiaMart shares down 19% on Jefferies downgrade: buy,...

October 21, 2024

FTX customers may get their money back, but...

May 11, 2024

Europe markets open: Gains expected after Trump walks...

April 23, 2025

Top 3 Nasdaq 100 stocks rising as it...

April 4, 2025

Tesla transfers $760 million in bitcoin: what’s next...

October 16, 2024

TSMC Q3 earnings beat forecast with AI chip...

October 17, 2024

Trump Media (DJT) stock soars 19%, marks fourth...

October 9, 2024

Elon Musk says his companies are ‘suffering’ due...

March 29, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,022)
    • Investing (2,459)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved