Hyundai Motor India IPO: Share price

In October 2024, Hyundai Motor India initiated its much-anticipated Initial Public Offering (IPO), which stands as one of the largest in the history of India, with an objective to raise approximately ₹27,870 crore. The price range was established between ₹1,865 and ₹1,960 per share, generating significant interest in the market. Below is a comprehensive overview of the events surrounding Hyundai’s listing.

Hyundai ipo detail

The Hyundai IPO was open for subscription from October 15 to October 17, 2024. This book-built issue offered 142.2 million shares to potential investors. The subscription attracted considerable interest across various investor segments. The price range of ₹1,865 to ₹1,960 drew participation from retail investors, institutional buyers, and anchor investors, with the company successfully securing ₹8,315 crore from anchor investors.

Listing and Market Reaction

Upon its listing on October 22, 2024, Hyundai shares opened at ₹1,977, reflecting a slight premium over the issue price. However, investor sentiment quickly deteriorated. Despite the substantial size of the IPO, market fluctuations and global economic uncertainties led to a lackluster performance on the first trading day, with shares declining approximately 7% to close around ₹1,820.

Analysts had anticipated a subdued debut, as the grey market premium (GMP) prior to the listing was relatively low, indicating a cautious outlook for immediate gains. The valuation of Hyundai’s IPO was perceived as high compared to competitors such as Maruti Suzuki, which negatively impacted demand for the stock, particularly among short-term investors seeking quick profits.

Challenges Following the Listing
Hyundai faced several challenges in the period following its listing. Concerns emerged regarding the company’s expansion strategy. Although Hyundai had announced a substantial ₹32,000 crore investment plan, skepticism arose regarding its capacity to fund this expansion due to diminished reserves and other financial constraints.

Analysts had anticipated a subdued debut, as the grey market premium (GMP) prior to the listing was relatively low, indicating a cautious outlook for immediate gains. The valuation of Hyundai’s IPO was perceived as high compared to competitors such as Maruti Suzuki, which negatively impacted demand for the stock, particularly among short-term investors seeking quick profits.

 Challenges Following the Listing

Hyundai faced several challenges in the period following its listing. Concerns emerged regarding the company’s expansion strategy. Although Hyundai had announced a substantial ₹32,000 crore investment plan, skepticism arose regarding its capacity to fund this expansion due to diminished reserves and other financial constraints.