BTTV Pits Hyundai Financial Against Those Of Maruti, Mahindra & Tata Motors

Hyundai Motor India is set to launch the largest IPO in the Indian stock market history on October 15. The subsidiary of the South Korean major will be selling its shares in the range of Rs 1,865-1,960 crore to raise a total of Rs 27,856 crore through its initial stake sale. It will be India's biggest primary offering, ranking LIC and Paytm as second and third respectively. However, some market participants believe that Hyundai Motors India has aggressively priced its IPO, which is entirely an offer-for-sale (OFS) of up to 14,21,94,700 equity shares by its parent Hyundai Motor Company, leaving little room for upside for the investors, who can apply for a minimum of seven equity shares and its multiples thereafter. The impact of 'rich valuations' can be seen in the grey market premium (GMP) of Hyundai Motor India, which has plunged sharply to Rs 111 per share, suggesting mild gains of about 6 per cent to the investors. However, the premium in the unofficial market stood at Rs 270 apiece a couple of days ago, while it was somewhere around Rs 400 in the beginning of the month.