Hyundai Motor India IPO Allotment Status: How to Check and Key Dates in 2024

Investors who applied for the Hyundai Motor India IPO can check their allotment status through two primary methods: the BSE website

Hyundai Motor India IPO Allotment Status: How to Check and Key Dates in 2024

Hyundai Motor India, the automobile giant has closed its IPO subscription. The process drew a huge amount of attention from investors. While the allotment status is likely to be declared by Friday, October 18, investors will receive their respective allotment alerts by Monday, October 21. Actually, this has been India’s biggest recent time float so far and even though interest remains dull, stable and overall subscriptions have reached 2.37 times. Institutional buyers participated in large numbers and subscribed to the allotment reserved for them 6.97 times, while retail and non-institutional bids were relatively low, at 50% and 60%, respectively.

There follow the essential details about the IPO along with a guide on how investors can check the allotment status .

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Hyundai Motor India IPO Overview: Key Details

IPO Timeline: 
Bidding Period: October 15 to October 17, 2024.
Price Band: Rs 1,865 to Rs 1,960 per share.
Lot Size: The investors were required to bid in lots of 7 shares per lot.
Offer Size: Rs 27,856 crore, comprising of 142.19 million shares. All this sale issue belonged to Hyundai Motor Company, the South Korean parent company and was an Offer for Sale (OFS).
Although it was the country’s biggest IPO, demand in the offer was only moderate following several factors, largely aggressive pricing and economic uncertainties. However, institutional investors helped buoy the IPO on its final day, making it garner a 2.37 times subscription.

Market Response Lags Subscriptions Breakdown

The IPO saw some subdued interest initially, but demand was significantly different between various categories of investors:

QIBs: Subscribed 6.97 times. The institutional portion was the backbone upon which the overall subscription scored a satisfactory level of subscription. In fact, institutions like banks, pension funds, and mutual funds had submitted large bids in the last leg of the IPO. That had remained essential for the success of this IPO.

Retail Investors: Subscribed only at 50%. On the whole, several retail investors seemed not to be in a mood to open their hands for the issue as the price band remained very high at Rs 1,865-Rs1,960 per share, which could have scared away the small bidders. The grey market sentiment too reflected in the sharp correction in the Grey Market Premium (GMP).

Non Institutional Investors (NIIs): Subscribed 60%. The non-institutional investor segment, comprising some relatively high-net-worth individuals, also bid only 60% as this segment too seemed quite cautious.

Employee Quota: This sector was subscribed 1.74 times, which reflected the confidence of Hyundai’s employees in the company’s future performance.

Decline in GMP:

In the run-up to the IPO, Hyundai Motor India had generated tremendous buzz in the grey market and premiums had hit as high as Rs 500 a share. However, GMP has fallen drastically in post-bid one, showing discount of Rs 32-35 per share in the end of its bidding. It manifests that investors expect a potential listing loss of around 2% on the stock’s debut.

While there is a sharp decline in the GMP that could be credited to the heavy pricing of the shares and the humongous size of the offer, there still hangs a major question mark over the possibility of oversupply leading to subdued market demand post-listing.

Future Prospects and Expert Views

While there might have been a subdued retail response and corrections on the grey market front, several brokerages have come forward to confess that Hyundai Motor India’s long-term prospects are exciting. Why?

Hyundai Motor India is one of the largest car manufacturers in the world and a subsidiary of South Korea’s Hyundai Motor Company – brands with which one traditionally associates quality, innovation, and reliability. Its massive product portfolio- from sedans and hatchbacks to SUVs and electric vehicles (EVs)-caters to the high-value segment as well as high volumes.

Financial Strength: The solid financial record of the company, the robust balance sheet, and the expansion plan going forward can be cited as some major reasons that the brokerages motivate a large number of investors to subscribe to the IPO for medium- to long-term gains.

Market Leadership: Hyundai has a significant market share in India’s automobile market, and it was the leader in the country and especially in the passenger car space. Its continued premiumization focus and now its position in the EV market only strengthens the growth prospects.

However, large issue size, eroded cash reserves and the fact that this is an altogether OFS IPO where no fresh capital is raised- all this has created apprehensions. Factors such as these, and resultant future stake sales, are worrying investors because they fear that such may hamper the post-listing performance of the stock.

Hyundai Motor India IPO Allotment Status Checking Procedure

The allotment status can be checked through the two major platforms: one is the BSE website and the other portal is through KFin Technologies. Investors who had applied for the IPO in Hyundai Motor India can check their status from these two avenues.

Shares of the company shall be listed on both BSE and NSE with October 22, Tuesday as the tentative date of listing.

Investors, who had bid for the issue of Hyundai Motor India, can check the allotment status on the Bombay Stock Exchange (BSE) website:

1) Visit https://www.bseindia.com/investors/appli_check.aspx

2) Under the issue type, click Equity

3) Under the issue name, select Hyundai Motor India Limited in the dropbox

4) Write the application number

5) Add the PAN card ID

6) Click on ‘I am not a Robot’ and hit submit

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Disclaimer:

All above recommendations are of the market analysts. Neither the author, nor the brokerage firm, nor Stockstoday.in will be responsible for any loss arising out of any such decision taken based upon this information. All users are cautioned to take their own expert advice prior to making any investment decision.

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