Issue scrapes through with QIB, Employees support
By B N KUMAR
MUMBAI, Oct 17 (The CONNECT) – The country’s largest IPO of Hyundai Motor India Limited was subscribes 2.37 times on the back of the qualified institutional buyers (QIB) and employees even as the retail investors showed little interest.
Bajaj Broking and some other broke has recommended subscription to the IPO with a long-term perspective.
This obviously led to a perception that there could be no or little listing gains which explains the lack of interest in the issue, a stock market observer said.
Arun Kejriwal of Kejriwal Research opined that the issue was overpriced. The targeted amount of Rs 24,000 crore was pushed to Rs 27,870 crores obviously based on the grey market expectations of listing at premium, he said.
Data from the exchanges shows that the QIB portion was subscribes nearly seven times and the employee segment 1.74 times. Non Instotjtioonal Buyers did not show much interest as their segment attracted just about 60% of the bids reserved for it. The retail portion of the bids was filled half.
“The poor response from HNI and retail segments clearly reflects overpricing,” Kejriwal said and expressed the apprehension that the country’s largest ever IPO is at the risk of listing at a discount on Tuesday 22nd October 22.
Hyundai Motor India is part of the Hyundai Motor Group, which is the third largest auto OEM in the world based on passenger vehicle sales in CY2023, according to the CRISIL Report.
The initial public offering, only an offer for sale of 142,194,700 Equity Shares by Hyundai Motor Company, opened on Tuesday at the price band of ₹ 1,865 to ₹ 1,960 per Equity Share.
Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, HSBC Securities and Capital Markets (India) Private Limited, J.P. Morgan India Private Limited and Morgan Stanley India Company Private Limited are the Book Running Lead Managers (BRLMs) to the Offer.
