Should you invest in the Hyundai IPO despite the low GMP?

Always expect the unexpected from Mr Market, and Hyundai's upcoming IPO is a testament to this golden rule. At a time when even weaker listings are debuting at exorbitant premiums, India's largest IPO is struggling to attract investors in the grey market. Hyundai's grey market premium (GMP), which stood at 18 per cent as of October 4, 2024, has now fallen to just 2 per cent. So, what's worrying high-net-worth individuals (HNIs) and stockbrokers? More importantly, should retail investors take a cue and hold off on betting on the South Korean automaker? While there are no easy answers, a thorough analysis of the concerns may provide some clarity. The grey clouds over Hyundai Let's be straightforward: grey markets are speculative and volatile. While GMP can serve as an indicator of market sentiment, it should always be taken with a grain of salt. That said, three key concerns have surfaced that are worth examining: 1. The IPO is just a golden ticket for promoters Hyundai has long been a cash cow for its So