The Biggest IPO in Indian Stock Market History:
Hyundai IPO
The biggest IPO in the history of the Indian stock market so far was L, with a total amount of 60,600 crores. This is a huge amount, and there was plenty of allotment available. Along with that, there was quite a bit of drama and action, which made it exciting for everyone. This was a company that everyone was aware of, so everyone was interested in that IPO.
Now, we are about to see the “father” of that IPO—an IPO that is above 26,600 crores. The company’s name is 27,700 crores, and this is going to be the largest IPO in Indian history. You haven’t seen a bigger IPO than this yet.
Whenever such large IPOs come, it becomes even more important to study them because you can get substantial allotments. Based on the details we have so far, I will try to share the information with you.
Important Information about the Hyundai IPO
The expected opening date for the IPO is between October 14 and 16, and before Diwali, the tentative listing date is expected to be on October 21 or 22. This means that the listing is anticipated to happen by October 22.
We know that whenever a large IPO comes, there tends to be a correction or confusion in the market. Following old traditions, the correction has already started in the market. The reason for this correction this time is international events, such as activities between Iran and Israel, and some money is flowing towards China. Due to all these reasons, volatility has started in the Indian market as well.
Shareholder Quota of Hyundai IPO
Many of you might be wondering if there is any shareholder quota for this IPO. The answer is no. To have a shareholder quota, there needs to be a parent company listed in India, and there is no such scenario here.
Indian Four-Wheeler Market
In the Indian four-wheeler segment, there is a 41% market share. As of today, Hyundai has a revenue of 4.45 lakh crores, while M&M has a revenue of 1.42 lakh crores.
Price-to-Earnings Ratio
When we talk about the price-to-earnings ratio, let’s assume it is 1600 rupees. However, if the price goes to around 1800-1900 for any reason, it means it will align with the valuations of its peer competitors.
This implies that it is being considered a expensive IPO. For both you and us, there isn’t much scope left here. Personally, I feel that if the price stays above 2000, the grey market premium that you currently see will crash.
An excitement level will remain around 1500-1600, but if the price goes above 2000, it will be considered quite expensive. This means there won’t be much scope left for new investors.
Grey Market Premium
When this IPO was announced, it was expected that the price point would be around 1200. The grey market premium was running at around 100. However, large players have already started selling their applications in the grey market.
Due to this, the price has dropped. If we talk about last Thursday and Friday, the low was already set at just 500 rupees.
Impact on the Market
This massive IPO coming into the market will also affect liquidity. The new SEBI rule has already come into play, where the lot size for futures options has been increased, and weekly expiries have been shut down.
Conclusion
What do you think? Does the market correct itself when a large IPO comes in? Will the old curse return? Make sure to comment below. If you liked this video, please give it a thumbs up. As new details come in, I will bring another detailed to you.