By- Sandeep Bishnoi | Oct 19, 2024 | Category: News
Explore Hyundai’s massive ₹27,870 crore IPO and see how it compares to the biggest IPOs in India, including LIC, Paytm, Coal India, and Reliance Power. Dive into their performance, size, and impact on the market.
Key Points:
- Hyundai Motor India launched a ₹27,870 crore IPO, fully subscribed by 2.37x, largely driven by Qualified Institutional Buyers (QIBs).
- The top 5 largest IPOs in India include Hyundai, LIC, Paytm, Coal India, and Reliance Power.
- While Hyundai’s IPO had a strong finish, its early days showed a slow response from retail investors.
- Comparisons reveal that Coal India and Reliance Power had stronger initial performances compared to Hyundai, LIC, and Paytm.
- The Hyundai IPO highlights the growing interest in the automobile sector, especially driven by its SUV models in India.
Hyundai IPO: A Closer Look at the ₹27,870 Crore Public Offering
Hyundai Motor India, the second-largest carmaker in the country, made headlines with its ₹27,870 crore Initial Public Offering (IPO), making it one of the largest public offerings in Indian market history. Launched on October 15, 2024, and closing on October 17, the IPO saw a sluggish start but eventually managed to get fully subscribed at 2.37x.
Initially, the public offer saw a mere 18% subscription on the first day and only 42% by the second. It was the final day when QIBs came to the rescue, pushing the IPO to full subscription, with QIBs oversubscribing their reserved portion by 6.97x. On the other hand, the participation of non-institutional investors (NIIs) and retail individual investors (RIIs) was notably weaker, subscribing only 60% and 50% of their respective quotas.
The price band for the Hyundai IPO was set between ₹1,865 to ₹1,960 per share, and it was an entirely offer-for-sale issue. The listing of Hyundai’s shares is expected on October 22, 2024.
Hyundai IPO vs India’s Largest IPOs
To understand Hyundai’s market debut better, let’s compare it with some of the largest IPOs in India’s history:
1. Life Insurance Corporation of India (LIC) – ₹21,008 Crore
LIC’s IPO in May 2022 was fully subscribed 2.95x. However, it listed at an 8.61% discount to its issue price and saw only modest gains since. Today, LIC trades around ₹930, showing a nearly 14% increase since its listing.
2. Paytm (One97 Communications) – ₹18,300 Crore
Paytm’s much-anticipated IPO in November 2021 saw an underwhelming performance, with the stock listing at a 9.07% discount and plunging by over 50% since. Currently, Paytm trades above ₹700, far below its issue price of ₹2,150.
3. Coal India – ₹15,199 Crore
Coal India’s 2010 IPO is often cited as one of India’s most successful public offerings. It was oversubscribed 15.28x and listed with a strong premium of 17.44%, ending its first day with a 40% gain. Today, Coal India’s stock is up by over 41% from its listing price, trading at over ₹490.
4. Reliance Power – ₹11,563 Crore
The story of Reliance Power is one of highs and lows. Launched during the 2008 financial crisis, the IPO was oversubscribed 73.04x, making it the most in-demand IPO in India’s history. However, after a rocky start, the company’s stock plummeted. Reliance Power now trades below ₹50, far from its issue price of ₹450.
How Hyundai’s IPO Stacks Up
Hyundai’s IPO, while significant in size, did not quite achieve the meteoric subscription levels of Coal India or Reliance Power. However, its success lies in its strong appeal to QIBs and its relevance in India’s booming automobile sector. Hyundai’s leadership in the SUV market, driven by models like the Creta, Venue, and Exter, gives it a competitive edge in this space.
According to market analysts, Hyundai’s asking price premium compared to Maruti Suzuki and Mahindra & Mahindra reflects its strong brand value and multi-segment growth potential. Its focus on expanding its electric vehicle portfolio and strengthening its presence in the SUV category makes it an attractive bet for long-term investors.
Conclusion: Hyundai’s Place in IPO History
While Hyundai’s IPO didn’t outperform Coal India or Reliance Power in terms of subscription rates, its large offering cements its position as one of India’s biggest IPOs. The strong backing from institutional investors signals confidence in Hyundai’s growth trajectory in the Indian market, particularly in the SUV segment. Investors will be keen to see how Hyundai performs after its listing on October 22, especially in comparison to past giants like LIC, Paytm, and Coal India.
Disclaimer:
Investing in the stock market carries inherent risks. This article is for informational purposes only and should not be taken as financial advice. Always consult with a certified financial advisor before making investment decisions.
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