Hyundai Motor India made its stock market debut on October 22, 2024, with shares listing at a slight discount on both the NSE and BSE. On the NSE, Hyundai Motor India shares opened at ₹1,934, a 1.3% discount to its issue price of ₹1,960. Meanwhile, on the BSE, the stock listed at ₹1,931, down 1.5% from the issue price. This marks a rather muted debut for what was India’s largest initial public offering (IPO) to date.
Market Cap Loss Overview
The market cap for Hyundai Motor India, which was pegged at ₹1,51,392.66 crore at the issue price of ₹1,960, saw a significant dip on listing day. By midday, with the stock trading at ₹1,860.90, Hyundai Motor India had lost approximately ₹7,652 crore in market capitalization, bringing the new total market cap down to around ₹1,43,740 crore.
This market cap loss comes despite the stock market’s anticipation surrounding Hyundai’s entry into the bourses, especially as the IPO raised ₹27,870.16 crore, making it the largest public offering in India’s history.
Hyundai Motor IPO Overview
The Hyundai Motor IPO, which opened for subscription between October 15 and October 17, 2024, garnered a total subscription of 2.37 times. The company received bids for 23.63 crore shares against the 9.89 crore shares on offer. While the qualified institutional buyers (QIB) segment showed strong demand, with 6.97 times subscription, both the retail investor and non-institutional investors (NII) categories witnessed tepid responses. The retail portion was subscribed only 0.50 times, while the NII segment saw a 0.60 times subscription.
Despite the record-breaking size of the IPO, the listing day performance did not reflect the anticipated optimism, primarily due to less-than-expected demand from retail investors and high net worth individuals during the subscription period.
Looking Ahead
Although Hyundai Motor India’s debut on the stock exchanges has been subdued, analysts remain optimistic about the company’s long-term prospects, particularly due to its strong foothold in India’s rapidly expanding automotive market. As the company seeks to solidify its presence in the electric vehicle (EV) segment with future launches like the all-electric Creta, the stock may gain traction in the coming months.
Hyundai’s listing on the Indian stock market will be watched closely in the coming days to see if it can recoup the initial losses and build investor confidence going forward.
