Hyundai IPO: Was Rs 27,870 Crore Public Offer Better Than LIC, Coal India, Paytm? 5 Biggest IPO List In India

Hyundai Motor India IPO: The South Korean-based Hyundai in a nerve-wracking bidding of its Rs 27,870 crore IPO, managed to fully subscribe by 2.37x. Hyundai IPO received strong appetite from qualified institutional buyers (QIB) on the final day of the offer. Does that make Hyundai IPO's performance better than other top IPOs in Indian market history? Let's find out!

Currently, the auto giant's Rs 27,870 crore IPO holds the title of the biggest IPO in India, succeeding the LIC IPO. That being said, the five biggest IPO in India as of now are -- Hyundai Motor India, Life Insurance Corporation Of India (LIC), One97 Communications (Paytm), Coal India, and Reliance Power.

It needs to be noted that these IPOs are also the largest in their respective sectors like automobile, insurance, metals & mining, fintech, and power industry.

Hyundai Motor India IPO: Rs 27,870.16 Crore Size

Hyundai, which is the second largest carmaker in India, launched its behemoth IPO on October 15, which closed on October 17. The first two days of the IPO were tepid, with dull responses from QIBs, and slow buying from non-institutional investors (NIIs) and retail individual investors (RII).

On October 15, the IPO subscribed by meagre 18% of its total size, while on October 16th, the offer received about 42% subscription. But it was a close escape from not-fully-subscribed to fully-subscribed status on October 17, with the IPO receiving a subscription of 2.37x. The last day witnessed bulk buying from QIBs, as the portion reserved for these investors oversubscribed by 6.97x. That was it! Hyundai IPO was saved by QIBs, while the portion reserved for NIIs and RIIs did not receive full subscription during the period. QIBs are foreign institutional investors, domestic institutional investors, and mutual funds among others.

NIIs portion subscribed by 60% of the reserved size, while RIIs portion subscribed by 50% of its reserved size. Apart from QIBs, it was only the employees' reserved portion that subscribed by 1.74x.

The IPO was entirely offered for sale of up to 9,97,69,810 equity shares, and the price band was fixed at Rs 1865 to Rs 1960 per share. The IPO is carrying allotment status on October 18 and is expected to list on October 22.

On Hyundai's listing ahead, Prashanth Tapse, Senior VP (Research), Mehta Equities said, "As per my readings post price band release, Hyundai Motor India is seeking slightly higher premium to Maruti and lower to M&M based on price earnings ratio while Hyundai stands to be expensive in terms of price to book value. Hyundai India justifies its premium ask considering its leadership in SUV sales, world-class brand image followed by better safety ratings, Multi-segment growth visibility largely been driven by its popular SUVs, particularly the Creta, Exter, and Venue models in the Indian market."

Coming back to Hyundai, has the Mother IPO of India performed better than previous IPOs that held the title of biggest ever? Find Out!

LIC IPO: Rs 21,008 Crore Size

The IPO by India's largest insurance company, LIC opened for bidding between May 4, 2022, to May 9, 2022, and was fully subscribed by 2.95 times by the final day.

LIC listed on May 17, 2022, at a discount of 8.61% to Rs 867.20 apiece on BSE compared to the final issue price of Rs 949. The stock ended on a discount as well to Rs 875.45 apiece on the listing day.

Currently, LIC is trading above Rs 930 levels and has touched a 52-week high and low of Rs 1,221.50 apiece and Rs 597.65 apiece. Since listing, the stock has gained by nearly 14% as of now.

Paytm IPO: Rs 18,300 Crore Size

The fintech giant launched its IPO from November 8, 2021, to November 10, 2021, and the public offer received fully subscribed 1.89 times on the final day.

Just like LIC, Paytm debuted on stock exchanges at a discount of 9.07% to Rs 1,955 apiece on BSE compared to the IPO issue price of Rs 2,150 apiece. The IPO also ended at a discount of Rs 1,564.15 apiece on the listing day.

At present, Paytm is above Rs 700 mark and has a market cap of around Rs 45,173 crore. Notably, Paytm shares have corrected sharply from their listing price, down by 54.5% since debut.

Coal India IPO: Rs 15,199 Crore Size:

The largest government-backed coal producer, Coal India launched its IPO from October 18, 2010, to October 21, 2010. The IPO oversubscribed by 15.28 times by the end of the final day, making it the better-performing IPO compared to Hyundai, LIC, and Paytm.

Furthermore, unlike LIC and Paytm, Coal India also listed at a premium from its IPO issue price of Rs 245 apiece. Coal India debuted on November 4, 2010, at a 17.44% premium and ended on the day with a massive 40% upside at Rs 342.35 apiece from the IPO price.

Coal India's share price is currently above Rs 490 apiece, with a market cap of nearly Rs 3.04 lakh crore. Since its listing, Coal India stock is up by 41%.

Reliance Power: Rs 11,563 Crore Size

Anil Ambani-backed Reliance Power launched its IPO during the great recession times and managed to have a bumper appetite from investors. The IPO opened on January 15, 2008, and closed on January 18, 2008. By the end of the final day, the power company's public offer had oversubscribed by a whopping 73.04x, making it the best-performance IPO compared to the above-mentioned companies.

Reliance Power listed on February 11, 2008, at a strong premium of 21.73% to Rs 547.80 apiece on BSE, compared to its IPO issue price of Rs 450.00 apiece. However, the debut day of Reliance Power was a roller coaster ride, because soon after nearing Rs 600 levels, the stock corrected sharply and ended at Rs 372.50 apiece down by over 17% from its IPO price.

However, the glorious days of IPO did not last long for Reliance Power after the company opted for insolvency resolutions due to mounting debt. Currently, the stock price is below Rs 50, while its market cap is nearly Rs 17,200 crore. At the latest, Reliance Power has carried out back-to-back fundraising proposals and reduced its debt drastically. Nonetheless, the all-time performance of Reliance Power is down by over 82% on BSE.

However, it also needs to be noted that some of these stocks have been most likely adjusted to stock splits, bonus issues, and dividend ratios.