Hyundai Motor India Ltd. experienced a rough start in its Mumbai stock market debut, dropping nearly 6% as shares hit 1,844.65 rupees, below the initial 1,960 rupees offer price. This launch was India’s largest-ever IPO, with Hyundai Motor Co. offloading a 17.5% stake to leverage a booming Indian IPO market. Despite the IPO being oversubscribed more than twice, its book-building process was slower than anticipated. Institutional investors showed robust interest, particularly on the final sale day, while retail investors only bought half of their reserved shares, deterred by Hyundai keeping all IPO proceeds amid cooling automobile demand in India.
Hyundai India, valued around $19 billion, is the country’s second-largest carmaker. The IPO’s valuation was deemed high, with a concern from analysts like Bloomberg’s Joanna Chen about its fivefold increase over the Korean parent company, yet it was on par with Indian competitors like Maruti Suzuki. Although other IPOs in India have seen average gains of 39% on their first day, Hyundai’s initial dip bucked this trend. Analysts remain optimistic about the stock’s long-term potential, but caution arises from changing consumer preferences and tougher competition in India.
India’s economic growth and burgeoning middle class provide lucrative prospects for automakers, targeting a market forecasted to reach 20 million units by 2047. Nomura Holdings endorsed the IPO with a buy rating, projecting a 26% uplist to 2,472 rupees, citing healthy volume growth and price hikes. Hyundai’s IPO raises the year’s Indian IPO total past $12 billion, surpassing previous years’ numbers but shy of 2021’s $17.8 billion record. Upcoming listings from Swiggy Ltd. and NTPC Ltd.’s renewable unit, along with over 20 Asia Pacific companies potentially raising $8 billion this week, highlight the robust IPO activity.
Original Story https://www.thehindubusinessline.com/markets/stock-markets/hyundai-stocks-hyundai-share-price-today-hyundai-ipo-listing-live-22-oct-2024/article68781660.ece
Category :
Tags:
Publish Date: 2024-10-22 12:26:00
