Hyundai Motor India Limited Shares Disappoint on Market Debut

Hyundai Motor India Limited (HMIL) had a challenging start on the stock market today, with shares opening below their issue price. On the Bombay Stock Exchange (BSE), the stock debuted at ₹1,931, marking a 1.5% decline from the issue price of ₹1,960. Similarly, on the National Stock Exchange (NSE), shares opened at ₹1,934 and saw an additional drop of 3% shortly after trading commenced.

The initial public offering (IPO), which is India’s largest to date, successfully raised ₹27,870.16 crores through an offer for sale of 14.22 crore shares. The IPO pricing was set between ₹1,865 and ₹1,960 per share, with the final price fixed at the upper end of this range at ₹1,960. The IPO subscription period ran from October 15 to October 17, with shares allocated to successful bidders on October 18 and credited to their demat accounts on October 21. Trading began today, October 22, 2024, on both the BSE and NSE.

Commenting on the stock’s performance, Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., acknowledged the disappointing opening but emphasized Hyundai’s strong fundamentals. As the second-largest passenger vehicle manufacturer in India, she noted the company’s strategic focus on the SUV segment, which enhances its long-term growth potential. Nyati advised investors with a long-term perspective to consider holding onto the stock, suggesting that Hyundai’s competitive position and ongoing product innovations are likely to support future performance.

Despite Hyundai’s robust market presence and impressive financial results, various factors may have contributed to the weak debut. The broader market sentiment has been volatile, with many investors exercising caution regarding new listings amidst uncertainties in both the global economy and the Indian market. Additionally, since the IPO was structured as an offer for sale, the funds raised will not be directed toward business expansion, which may have dampened investor enthusiasm.