Glimpses of the celebration of the listing ceremony of Hyundai Motor India Limited today at our Exchange@NSEIndia. #NSE #NSEIndia #IPO #ListingCeremony #HyundaiMotorIndiaLimited @ashishchauhan
Music: Harmony Ikson pic.twitter.com/n0hhshs4xH
— NSE India (@NSEIndia) October 22, 2024
Hyundai Motor India’s shares fell nearly 7% on their trading debut Tuesday after the company raised $3.3 billion in India’s largest-ever initial public offering (IPO). The stock opened at 1,934 rupees compared to its IPO price of 1,960 rupees. Despite the IPO being oversubscribed, it did not manage to attract much enthusiasm from retail investors.
The company is now valued at just under $18 billion, falling short of its targeted valuation of $19 billion.
Congratulations Hyundai Motor India Limited on getting listed on NSE today. Hyundai Motors India Limited (HMIL) is a part of South Korea based the “Hyundai Motor Group”, which is the amongst the leading passenger vehicle (PV-OEM) manufacturer globally. The Public issue was of… pic.twitter.com/JOiOLvNGTO
— NSE India (@NSEIndia) October 22, 2024
Euisun Chung, Executive Chairman of Hyundai and Chief Executive Officer (CEO) of Hyundai Motor Group, and Ashishkumar Chauhan, Managing Director and Chief Executive Officer of the National Stock Exchange (NSE), were present at the listing ceremony of Hyundai Motor India Limited’s IPO. Analysts have given Hyundai Motor India a buy rating, attributing their optimism to the company’s strong focus on SUVs.
#EXCLUSIVE | How will Hyundai Motor India turn around shareholder perception after tepid response to listing?
Tarun Garg of @HyundaiIndia explains the growth roadmap for the company, EV expansion plans, royalty and more @anujosh_aj @_sherylld @_anishaj pic.twitter.com/Ij7ZuAZQLx
— ET NOW (@ETNOWlive) October 22, 2024
Recent sales slowdowns in India are considered to be of little concern in the long run, according to company executives.
Hyundai Motor India’s trading debut
Kranthi Bathini, director of equity strategy at Wealthmills Securities, said that the IPO was “fully subscribed and also fully priced in, so there is nothing much left on the table for the investors.” However, he added that considering the fundamentals and valuations of Hyundai Motor India, it is a better bet for the medium to long term.
IPO boost! Hyundai gets Rs 1.6 lakh cr 'm-cap' as feather in cap – 5th largest auto giant nowhttps://t.co/5ol7QU9jwS
— ET NOW (@ETNOWlive) October 22, 2024
Bathini also noted that unlike other automakers, Hyundai has been in the Indian market for about three decades, which has allowed the company to understand India’s policy-making as well as the preferences of Indian drivers and consumers. He described Hyundai’s portfolio as “robust” for the Indian market. Hyundai Motor India’s IPO was an offer for sale, where its parent Hyundai Motor Company sold its shares, rather than a traditional IPO where fresh shares are sold.
The company’s stock started trading on the National Stock Exchange as well as the BSE on Tuesday. The lead bookrunners for Hyundai India’s IPO were Kotak Mahindra Capital, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), J.P. Morgan India, and Morgan Stanley India. Neil Bahal, founder of Negen Capital, expressed optimism about the Indian IPO market, suggesting a record-breaking year for India with numerous IPOs and private equity exits.
He emphasized that the fundamentals in equity markets are strong, supported by policies from the Securities and Exchange Board of India (SEBI), retail participation, and broad-based opportunities.
