Hyundai Motor India Shares Make a Weak Start, Listed at a 1.32% Discount

Hyundai Motor India’s shares had a disappointing debut on the stock market on October 22, opening at Rs 1,934 per share on the NSE, which is 1.32% lower than the IPO price of Rs 1,960.

Despite a lukewarm response from retail investors, the IPO saw a huge demand from Qualified Institutional Buyers (QIBs), who oversubscribed by nearly 700% (6.97 times). This helped balance out the overall demand for Hyundai’s IPO, which is the largest ever in India.

The grey market premium (GMP) for Hyundai shares showed major ups and downs. After reaching a high of Rs 570 in late September, it fell into negative territory last week. On the listing day, the shares were trading at a GMP of Rs 62, which is about 3% higher than the issue price.

Hyundai Motor India’s IPO was a massive Rs 27,870 crore deal, surpassing LIC’s Rs 21,000 crore IPO. The price range for the shares was set between Rs 1,865 and Rs 1,960 per share. By the end of the bidding, the IPO had been subscribed 237%, mostly due to strong interest from institutional investors.

Hyundai, which has been operating in India since 1996, currently offers 13 different car models across various segments.

However, Emkay Institutional Equities has given a “REDUCE” rating to Hyundai Motor India with a target price of Rs 1,750 per share. They noted that while both Hyundai and Maruti Suzuki (MSIL) face similar challenges in the short term, they favor MSIL due to its more diverse product range, better powertrain options, and higher growth potential.

Sources: Internet Sources & Twitter X 

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