Hyundai Motor India makes weak stock market debut, lists 1.5% lower than IPO price

Hyundai Motor India shares made a weak stock market debut on Tuesday, October 22 as the stock opened for trading at Rs 1,931 on the BSE, marking a decline of 1.47 per cent from the Initial Public Offering ( IPO ) price of Rs 1,960. On the National Stock Exchange, Hyundai Motor India shares opened for trading at Rs 1,934, marking a decline of 1.32 per cent.

Hyundai Motor India raised Rs 27,870 crore from the share sale via IPO which was India's biggest IPO on record after the Life Insurance Corporation (LIC) raised Rs 21,008 crore in 2022. A retail investor was allowed to bid for minimum one lot of seven shares up to maximum of 14 lots. one lot of Hyundai Motor India shares in the IPO was priced at Rs 13,720 at the upper end of the price band.

A day ahead of listing on stock exchanges, Hyundai Motor India shares were expected to list on a tepid note as indicated by its grey market premium. In the grey market, which is also known as futures market for IPOs, Hyundai India shares were being offered at a premium of Rs 67, market analysts said.

Hyundai Motor India's IPO saw a mixed response from investors as portion reserved for large investors, which fall under the category of Qualified Institutional Buyers, was booked 7 times while pies set aside for retail and non-institutional investors was booked 60 per cent and 50 per cent respectively.

"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. Investors who entered 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," said Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.

After a weak listing, Hyundai Motor India shares continued on their downward journey as the stock fell as much as 6 per cent from the IPO price to hit an intraday low of Rs 1,844 by 10:21 am on the National Stock Exchange.