Last month, India’s second largest automaker – Hyundai – went public. But this was not your run of the mill IPO. This was widely speculated to be the largest public listing ever seen in the Indian stock market. So there was naturally a lot of hype around it.
But on October 17, just hours before Hyundai’s public issue was set to close, most stock market circles across the country were stumped. There was a growing sense of disbelief. Panic even. Because only half of the nearly Rs 28,000 crore offer had been subscribed until then. This was a far cry from the 90 per cent threshold that had to be crossed.
The IPO eventually had a pretty listless listing on October 22. Despite all that hype.
Now naturally, that left a lot of people wondering what could have gone wrong? What prompted so many retail investors to keep away from the Hyundai IPO?
Well, a lot of it had to do with what transpired in Rajkot in the run-up to issue. This isn’t just about Hyundai. This small city in Gujarat has a big role to play in India’s IPO market.
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