Hyundai Motor India had a disappointing stock market debut on October 22, listing at a 1.32% discount at Rs 1,934 on the National Stock Exchange (NSE), compared to its initial public offering (IPO) price of Rs 1,960. The IPO, which raised a staggering Rs 27,870 crore, is notable for being the largest in India’s history. However, the market response has been lukewarm, particularly among retail investors, even as Qualified Institutional Buyers (QIBs) showed significant interest, oversubscribing by nearly 700%.
The stock experienced volatility on its first day of trading, opening lower than expected but momentarily recovering to Rs 1,968.80 before declining again. By 10:25 AM, Hyundai shares were trading at Rs 1,862.70, reflecting a decrease of 3.69%. Analysts have expressed caution regarding the stock’s future performance, with Emkay Institutional Equities assigning a REDUCE rating and setting a target price of Rs 1,750.
The muted retail interest raises questions about investor sentiment and market conditions for new listings. Experts attribute the weak debut to a combination of factors, including market volatility and broader economic uncertainties. While QIB demand provided some support during the IPO, the initial trading performance suggests challenges ahead for Hyundai Motor India in maintaining investor confidence.
As Hyundai seeks to strengthen its foothold in the Indian automotive market, investors will be closely monitoring the company’s performance and any strategic moves it may take in response to the market’s reaction. The successful integration of its offerings and addressing investor concerns will be crucial for the company moving forward.