Hyundai Motor India is scheduled to finalise share allotment basis on Friday, October 18. Bidders will get the messages, alerts or emails for debit of their funds or revocations of their IPO mandate either over the weekend or latest by Monday, October 21. The biggest IPO Indian share markets barely managed to sail through, thanks to the institutional push on the last day.
The IPO of Hyundai Motor India was open for bidding between October 15 and October 17. The company had offered its shares in the fixed price band of Rs 1,865-1,960 per share with a lot size of 7 shares. The car maker raised about Rs 27,856 crore via its primary offering was entirely an offer-for-sale (OFS) of 142,194,700 shares by its South Korean-parent Hyundai Motor Company.
The issue saw a muted bidding and was overall subscribed only 2.37 times. The quota for qualified institutional bidders (QIBs) was booked 6.97 times, while the reservation for employees was subscribed 1.74 times. The portion reserved for non-institutional investors and retail investors saw bidding for merely 60 per cent and 50 per cent during the bidding process.
Grey market premium (GMP) of Hyundai Motor India has seen a sharp correction after disappointing bidding for the issue. Last heard, the company was commanding a discount of Rs 32-35 per share, suggesting a loss of around 2 per cent for the investors on listing. Interestingly, it has lost its entire ground in the unofficial market, where is was commanding a premium of Rs 500 earlier.
Chennai-based Hyundai Motor India is a part of South Korea's Hyundai Motor Group, which is the third largest auto original equipment manufacturer (OEM) in the world based on passenger vehicle sales. It manufactures and sells four-wheeler passenger vehicles, including models such as sedans, hatchbacks, SUVs, and electric vehicles (EVs).
Brokerages mostly have a positive view on the issue and suggest subscribing for a long-term citing its sound financial record, strong brand recall, expansion plans, firm market share and focus on premiumization of the products. However, aggressive pricing, depleting cash reserves, large issue size, potential stake sale in future and complete offer for sale nature go against it.
Kotak Mahindra, Citigroup Global Markets India, HSBC Securities & Capital Markets, JP Morgan India and Morgan Stanley India are the book running lead managers of the Hyundai Motor IPO, while Kfin Technologies is the registrar for the issue. 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
Investors can also check the allotment status on the online portal of KFin Technologies Limited (https://kosmic.kfintech.com/ipostatus), the registrar to the issue.
The registrar is a Sebi-registered entity, qualified to act as such and which electronically processes all applications and carries out the allotment process, as per the prospectus. The registrar is responsible for complying with the timelines for updating the electronic credit of shares to successful applicants, dispatching and uploading refunds, and attending to all investor-related queries. 1) Go to the web portal of KFin Technologies Limited
2) Select the IPO in dropbox whose name will be populated only if the allotment is finalized
3) You may be required to select either one of the three modes: Application number, Demat Account number, or PAN ID
4) In application type, select between ASBA and non-ASBA
5) Enter the details of the mode you selected in Step 2
6) For security purposes, fill the captcha accurately
7) Hit submit.