Hyundai Motor India Ltd.’s highly anticipated stock market debut on October 22, 2024, saw a lukewarm response, with shares listing at a discount on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). On the NSE, the stock opened at ₹1,934, down 1.33% from its issue price of ₹1,960, while on the BSE, it listed at ₹1,931, reflecting a 1.47% dip. This underwhelming start came despite the company’s record-setting ₹27,870-crore initial public offering (IPO), the largest in India’s history, surpassing the ₹21,000 crore IPO of Life Insurance Corporation (LIC).
Investor sentiment appeared to weaken ahead of the listing, with the grey market premium (GMP) dropping to just 2%, or ₹48 per share, shortly before trading began—a decline from earlier estimates of a 5% premium. Hyundai Motor India’s IPO consisted entirely of an offer for sale (OFS) of 14.2 crore shares, with proceeds going to its parent company, Hyundai Motor Global, rather than the Indian unit. The shares were offered in a price band of ₹1,865 to ₹1,960.
Despite the muted debut, many analysts had rated the IPO a “Subscribe,” highlighting Hyundai Motor India’s strong growth potential, particularly as the country’s automotive market recovers. The company is the second-largest original equipment manufacturer (OEM) and exporter of passenger vehicles in India, with a domestic market share of 14.6%. It also boasts steady financial performance and a robust lineup of sports utility vehicles (SUVs). However, analysts warned of potential volatility in the short term, noting that Hyundai Motor India reported a 10% year-on-year drop in September sales, with total 2024 sales remaining flat at 5.77 lakh units.
The IPO was led by top financial institutions, including Kotak Mahindra Capital, HSBC Securities, JP Morgan India, Citigroup Global Markets, and Morgan Stanley India, while Kfin Technologies was the registrar. Despite a positive long-term outlook, the subdued listing reflects broader market concerns and uncertainties around the company’s near-term performance.
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The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. The stock market is subject to risks, and past performance is not indicative of future results. Readers are advised to consult with a qualified financial advisor or perform their own research before making any investment decisions. The author and publisher are not responsible for any financial losses or damages resulting from reliance on the information provided.
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