Hyundai Motor India IPO Sees Sharp Decline in Grey Market Premium Amid Subdued Investor Interest

The grey market premium (GMP) for Hyundai Motor India’s unlisted shares has dropped sharply, falling to 0.87 per cent, indicating weak market sentiment surrounding the automaker’s Initial Public Offering (IPO). This is a notable decline from the Rs 147 or 7.5 per cent GMP recorded on October 9, when Hyundai Motor revealed its IPO price band, according to grey market trackers.

The IPO, which opened for public subscription on Tuesday, October 15, has seen a tepid response from investors as it heads toward closing. As per NSE data, the issue has received bids for 4,17,21,442 shares out of the 9,97,69,810 shares on offer, translating to a subscription rate of just 0.42 times by the second day.

Retail Individual Investors (RIIs) have subscribed 0.38 times, Non-Institutional Investors (NIIs) 0.26 times, and Qualified Institutional Buyers (QIBs) 0.58 times. However, the employee quota has seen a more favorable response, with an oversubscription rate of 1.31 times.