New Delhi: The country's most talked about Hyundai Motor India IPO will be listed on Tuesday, October 22, 2024. This IPO has seen huge fluctuations in the last few days. Initially, investors were very excited about this, because after almost two decades an auto maker was getting listed in the stock market by bringing an IPO. The last time Maruti Suzuki brought an IPO was in 2003.

Hyundai Motor India's issue was heavily promoted as the country's biggest IPO. But, when the IPO opened for subscription, investors did not respond well. Especially, retail investors. The portion reserved for them was subscribed only 50 percent. However, by the last day, this public issue was subscribed 2.37 times overall.

Latest GMP of Hyundai IPO

Hyundai IPO got a very good response in the grey market premium (GMP) initially. But then it suddenly crashed. At one point, Hyundai IPO's GMP went negative. However, now it has gained some speed. The latest GMP of Hyundai IPO is Rs 95, which indicates a listing gain of 4.85 percent. The highest GMP on its IPO went up to Rs 585.

The grey market is an unofficial market where shares are traded before listing. The situation in the grey market keeps changing constantly. Based on this, it is estimated how is the demand for the shares of a company. However, experts insist that before investing in the IPO of a company, one should look at its fundamentals more than its GMP.

Why Hyundai IPO got poor response

Most investors were not showing interest in Hyundai's IPO from the very beginning. The main reason for this was that the IPO was completely an offer for sale. This means that the entire money raised from the IPO will go to the promoter and it will not be invested to improve the functioning of Hyundai Motor India.

Then the remaining gap was covered by the price band, which was overvalued in the eyes of investors and did not leave much scope for them to make profits. If Hyundai had issued fresh equity along with the offer for sale and kept the price a little lower, it could have received a great response from investors. Then perhaps the IPO investors would have got even more listing gains.