Hyundai Motor India Shares List at Discount on NSE and BSE: Mixed Market Response to India’s Largest IPO
Hyundai Motor India shares appeared on stock markets on October 22, 2024, but listed at a 1.32% discount to their IPO price. The stock opened at ₹1,934 for a share on the National Stock Exchange (NSE), lower than the initial public offer (IPO) price of ₹1,960. On the Bombay Stock Exchange (BSE), the stock listed at ₹1,931, signalling a 1.47% decline.
Hyundai IPO Sees Weak Retail Response but Strong Institutional Demand
Hyundai Motor India, the Indian subsidiary of South Korean car manufacturer Hyundai, faced a subdued retail response to its IPO. However, the demand from Qualified Institutional Buyers (QIBs) was strong, with their portion being oversubscribed by 6.97 times, or nearly 700%. This interest from QIBs helped stabilize what was otherwise a lukewarm response from retail investors.
Hyundai’s IPO, the largest in India’s history, raised ₹27,870 crore, crossing the Life Insurance Corporation (LIC) IPO of ₹21,000 crore. The price band for Hyundai Motor India’s initial share sale was set between ₹1,865 and ₹1,960 per share. However, the grey market premium (GMP) for the stock showed significant volatility, dropping to negative side after previously peaking at ₹570 in late September. On the listing day, the shares had a GMP in the price range of ₹62, indicating a premium of nearly 3%.
Hyundai India Share Price Performance
After opening at ₹1,934 on the NSE, Hyundai India shares reached a high of ₹1,968.80, a 0.44% increase. However, the stock quickly plummeted to ₹1,945.40, down 0.74%. By 10:25 AM, Hyundai India shares were trading at ₹1,862.70, denoting a 3.69% drop from the IPO price.
At the time of listing, Hyundai’s market valuation stood at ₹1,51,352.03 crore on the NSE. Even with this strong valuation, the mixed response to the Hyundai share price today shows investor caution.
Hyundai Share Price Target and Outlook
Emkay Institutional Equities has issued a “REDUCE” rating for Hyundai Motor India Ltd (HMIL), with a target price of ₹1,750 per share. The firm said that while both HMIL and Maruti Suzuki India Ltd (MSIL) face similar growth challenges in the near term, MSIL is favored for its more diversified product and powertrain mix, giving it a higher growth potential.
Hyundai Motor India’s Legacy and Future Prospects
Hyundai Motor India commenced operations in 1996 and currently sells 13 models across different segments. The company’s successful IPO, despite its initial lukewarm market reception, reflects both its strong institutional backing and its long-term growth potential in India’s expanding automobile market.
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