Hyundai IPO struggles to gain traction, lags behind LIC, Paytm in first two days

India’s biggest IPO, launched by the local arm of South Korean auto giant Hyundai Motor Company (HMC), is struggling to sail through amidst a low subscription rate. 

At the end of the second day of bidding, Hyundai Motor India Ltd (HMIL) IPO was subscribed just 0.42 times or 42%. This is lower than the day two subscription status of the next two biggest IPOs – Paytm and LIC. While the Rs 18,300 crore IPO of loss-making Paytm was subscribed 48%, the Rs 21,000 crore maiden share sale of LIC was fully subscribed at the end of day two.

So far, Hyundai has received bids for 4.17 crore shares against 9.97 crore shares on offer, according to data available at the BSE. The portion for retail individual investors (RIIs) was subscribed 38%, while the non-institutional investors’ category received 26% subscription. The portion for qualified institutional buyers (QIBs) was subscribed 58%. Only the employee portion was fully subscribed.

On day one, Hyundai’s issue was subscribed 0.18 times. This is similar to the day one subscription status of Paytm. LIC’s issue was subscribed 0.67 times at the end of its first day of bidding. 

The three-day bidding for the Hyundai issue will conclude on Thursday. HMIL is selling its shares in the price band of Rs 1,865-1,960 apiece. At the top end of the price band, the IPO is valued at Rs 27,870 crore with the company’s market capitalisation estimated at approximately Rs 1.6 lakh crore post-listing.