Hyundai Motor India IPO has made its much-anticipated debut on the stock exchanges today, October 22, 2024, with shares listing at Rs 1934 on the NSE, reflecting a 1.32% discount to its issue price of ₹1,960. This marks a notable entry for one of the largest IPOs in recent times, as Hyundai Motor India’s listing follows a strong institutional response during its subscription period from October 15 to October 17.
Listing Performance:
After being subscribed 2.37 times overall, Hyundai’s stock opened on a negative, reflecting caution. Despite initial volatility in the grey market premium (GMP), which had seen fluctuations leading up to the listing, the stock held steady, offering early investors a slight loss of 1.32%.
Institutional investors were the driving force behind this strong listing, with qualified institutional buyers (QIBs) subscribing 6.97 times, ensuring robust demand. However, the retail category saw lower interest, with subscriptions only reaching 0.50 times.
The stock’s opening aligns with market expectations, given the mix of optimism and cautious investor sentiment. Market analysts will continue to monitor Hyundai Motor India’s performance in the coming days, as the company begins trading amidst a challenging economic environment.
Hyundai Motor India is the second-largest automobile original equipment manufacturer (OEM) in the Indian passenger vehicle market, holding a market share of nearly 15%, trailing behind Maruti Suzuki India. However, its domestic market share has seen a decline from 17.6% in FY20, largely due to increasing competition from other local players such as Maruti Suzuki, Tata Motors, and Mahindra & Mahindra.
As Hyundai Motor India gears up for its much-anticipated stock market listing today, global brokerage firms Macquarie and Nomura have initiated coverage, each with bullish outlooks on the company’s growth potential.
Macquarie: ‘Outperform’ rating with a ₹2235 target price Macquarie has started coverage with an ‘Outperform’ rating and a target price of ₹2235, suggesting a potential 14% upside from the upper band of the issue price. The brokerage notes Hyundai’s premium positioning in the Indian auto market, highlighting that its favorable portfolio mix and powertrain optionality, backed by its parent company, provide room for market share gains. Macquarie is particularly optimistic about Hyundai’s upcoming new model launches and powertrain developments.
Nomura: ‘Buy’ rating with a ₹2472 target price Nomura, similarly bullish, has initiated a ‘Buy’ rating on Hyundai Motor India with a higher target price of ₹2472. The firm is optimistic about Hyundai’s strategy, pointing to an expected volume compound annual growth rate (CAGR) of 8% from FY25 to FY27, underpinned by the launch of 7-8 new models, including facelifts. Nomura also underscores the vast growth potential in the Indian car market, where penetration remains low at 36 cars per 1,000 people, offering Hyundai significant room for expansion.
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