Hyundai Motor India’s public issue was subscribed 42% at the end of the second day of the offer, with the company receiving bids for 41.7 million shares, against 99.8 million on offer.

The retail portion was subscribed 38% and the non-institutional investors (NIIs) portion was subscribed 26%. At least 50% of shares in the IPO are set aside for these two categories of investors – 35% for retail investors and 15% for NIIs.

The QIB portion was subscribed 58% by the end of the second day, with institutional investors bidding for 16.3 million shares, against 28.3 million on offer.

“Investors do not see listing gains. That is the reason for the tepid response. But, usually, once the QIB portion picks up on the last day, retail money follows,” said Sunny Agrawal, head of fundamental equity research at SBICAPS Securities.

Shares of Hyundai India were trading at a premium of Rs 31 in the grey market as per reports, significantly lower from Rs 380 at the beginning of this month.

Weak industry growth outlook, falling market share of Hyundai India, the issue being a complete offer for sale and revenue from spare parts being accounted in the parent company’s financials, rather than the Indian unit, are some of the key reasons for the fall in grey market premium, experts said.

On concerns over the IPO being a complete OFS, Deepak Shenoy, founder and CEO of Capitalmind, said: “The bigger question should be: Are they selling and running away? That was the case in many startups where VCs just want to exit, sometimes at any price they can get… But it’s not quite true in the Hyundai case, (because) they remain large shareholders and continue to run the company,” he said in a post on X.

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Shenoy said bigger risks regarding Hyundai India that should be talked about are “a higher royalty will be paid to the Korean parent from this year onwards. The car market has not yet found its glory days. Hyundai has more competition in India, (especially) in the electric segment. There is also the fact that Kia isn’t Hyundai India (it is owned by the global parent) and more innovation could start coming in the Kia brand”.

“Given the QIB interest, it is unlikely that there will be any risk of the IPO not going through,” Agrawal said.

The IPO will close for subscription on Thursday.