Automobile
Hyundai Motor India IPO lists below issue price, drops 3 per cent soon after debut
Despite Hyundai’s strong market presence and robust financial performance, several factors may have contributed to the weak debut.
Mumbai (Maharashtra), October 22: Hyundai Motor India Ltd (HMIL) made a disappointing stock market debut on Tuesday, with shares listing below their issue price. The stock opened at ₹ 1,931 on the Bombay Stock Exchange (BSE), lower than the issue price of ₹ 1,960, marking a decline of 1.5 per cent. The shares listed at ₹ 1,934 on the National Stock Exchange (NSE). After early trade, Hyundai’s share price fell another 3 per cent.
Hyundai Motor India’s initial public offering (IPO), India’s biggest IPO, raised ₹ 27,870.16 crore through an offer for sale of 14.22 crore shares.
The price range of the IPO was fixed between ₹ 1,865 and ₹ 1,960 per share, with the final issue price fixed at the higher end of the band, ₹ 1,960. The subscription period for the IPO was open from October 15 to October 17.
Hyundai Motor India shares were allotted to successful bidders on October 18, followed by credit into demat accounts on October 21. The company’s shares began trading on both BSE and NSE on October 22, 2024.
Shivani Nyati, Wealth Head, Swastik Investmart Ltd, said, “Despite the discounted listing, Hyundai Motor India’s strong fundamentals, being the second-largest passenger vehicle manufacturer in India, and its strategic focus on the SUV segment, continue to support its long-term growth prospects.” He added, “Investors entering with a long-term perspective may consider holding the stock, as future performance will likely be driven by the company’s competitive market position and product innovations.”
Despite Hyundai’s strong market presence and robust financial performance, several factors may have contributed to the weak debut.
Uncertainties in the global economy and the Indian market have caused investors to turn cautious towards new listings, leading to volatile market sentiment.
Additionally, since the IPO was structured as an offer for sale, the IPO proceeds did not contribute to business expansion, which may have impacted investor sentiment.
