Hyundai Motor India Ltd shares slipped almost 6% early in their Mumbai debut, a tepid start to trading for what was the nation’s largest-ever initial public offering.
The shares traded as low as 1,844.65 rupees after they were priced at 1,960 rupees, the top of the marketed range. South Korea’s Hyundai Motor Co sold a 17.5% stake in its local unit in the IPO, seeking to benefit from the investor frenzy for share sales in India — one of the world’s most vibrant venues for listings this year.
Hyundai Motor India, the nation’s second-largest carmaker by sales, was valued at about $19 billion in the IPO. Some saw the shares as pricey, with Bloomberg Intelligence analyst Joanna Chen noting the valuation was about five times its Korean parent’s, though in line with those of Indian peers such as Maruti Suzuki India Ltd.
While the offering was eventually oversubscribed more than two times, book-building was slower than some had anticipated. Hyundai’s deal saw strong demand from institutions, which flooded in on the last day of sale. Retail investors, however, only bought about half the portion that had been reserved for them in the IPO.

Individual traders were turned off by the parent company getting all of the IPO proceeds as well as cooling demand in India’s auto industry, analysts have said. The poor retail interest stands in contrast to the frenzy seen in some recent IPOs, particularly smaller issues.
‘Long-term value’
Hyundai’s initial decline makes it an outlier given that enthusiasm for Indian share sales has generally carried over to their post-listing performance. New listings in the nation have risen by an average of 39% in their first trading day this year, according to data compiled by Bloomberg. Among IPOs of over $500 million, the average gain was 66%.
Some analysts are positive on the stock’s long-term prospects.

“Hyundai Motor India’s IPO offers potential long-term value, but it is not suited for investors seeking quick gains,” Devi Subhakesan, an analyst at Investory Pte, wrote in a note on Smartkarma ahead of the debut. “Valuation risks are expected” amid shifting consumer preferences and rising competition in India’s auto industry.
India’s emergence as the world’s fastest-growing major economy as well as its expanding middle class present an opportunity for automakers. The nation’s car market is on track to reach 20 million units by 2047, Suzuki Motor Corp. Executive Vice President Kenichi Ayukawa said in an interview in July. A total of 4.2 million passenger vehicles were sold in India in the fiscal year ended in March, according to the Society of Indian Automobile Manufacturers.
Nomura Holdings Inc initiated coverage with a buy rating ahead of the listing, citing expectations for “healthy” volume growth and vehicle price increases. It set a price target of 2,472 rupees, implying a potential upside of about 26% over the IPO price.
With Hyundai’s proceeds, Indian IPOs have raised more than $12 billion so far this year, eclipsing volumes for the past two years but still below the record $17.8 billion raised in 2021, according to data compiled by Bloomberg. Other pending debuts include food-delivery company Swiggy Ltd. and the renewable-energy arm of state-run power producer NTPC Ltd.
Around 20 companies from Asia Pacific are listing shares this week in deals that may raise more than $8 billion, the biggest weekly volume since April 2022, according to data compiled by Bloomberg. Shares of Japan’s Tokyo Metro Co are scheduled to start trading on Wednesday after a $2.3 billion offering.

Republican presidential candidate Donald Trump announced new tax break proposals during a speech at the Detroit Economic Club on Thursday. He proposed making interest on car loans tax-deductible and ending double taxation for Americans living abroad.
Trump said that the car loan interest deduction could boost domestic auto production and make car ownership more affordable, especially in Michigan, a key swing state.“This will stimulate massive domestic auto production and make car ownership dramatically more affordable for millions and millions of working American families,” he said.
Trump also shared plans to notify Mexico and Canada about renegotiating the US-Mexico-Canada Agreement upon taking office, aiming to shift manufacturing jobs back to the United States. He said, “You vote for Trump, and you will see a mass exodus of manufacturing jobs, but from Mexico to Michigan, from Shanghai to Sterling Heights.”

The former president also committed to helping US citizens living abroad by pledging to end double taxation. He made this promise in a video statement shared by Solomon Yue, CEO of the group Republicans Overseas, on his account on X. “You have to make sure that you are registered and you are going to vote, because I’m going to take very good care of you,” Trump said. “Once and for all, I’m going to end double taxation on our overseas citizens. You’ve been wanting this for years, and nobody has listened to you. You deserve it, and I’m going to do it,” he added

Solomon Yue praised Trump for his commitment, saying, “Republicans Overseas has been fighting for the rights of Americans abroad since its inception ten years ago.” He added, “We have spoken to many politicians over the years, and while they sympathized with the burden of double taxation, very few have been willing to act.”
Currently, Americans residing in other countries often have to pay taxes both to the US government and the country where they live. Some bilateral agreements exist to reduce this tax burden.
Critics question the effectiveness of the car loan interest deduction, as many Americans do not itemize deductions. Howard Gleckman from the Urban-Brookings Tax Policy Center called it “more campaign pandering.”
Trump has also proposed tax breaks on tips, Social Security benefits, and overtime pay, as well as lifting the $10,000 cap on state and local tax deductions, which he had previously signed into law. His tax plan could increase the national debt by $7.5 trillion over a decade, according to the Committee for a Responsible Federal Budget.
Democratic presidential candidate Kamala Harris’s policy package would increase the debt by $3.5 trillion over the same period, the committee found.
Economist Marc Goldwein estimates Trump’s new proposals could reduce tax revenues by over $100 billion over ten years. Only about one-fifth of taxpayers might benefit from the car loan interest deduction if it is similar to the mortgage interest deduction.
Some audience members supported the proposals, like barber Paulina Salzeider, who said, “In the service industry, the nicer you are, the kinder you are, the friendlier you are, you get rewarded by tips. So I feel that we deserve it.” Others, such as financial adviser Curtis Lyons, were skeptical, believing past policies favored the wealthy.
Trump also addressed concerns about voter fraud in the 2024 elections, cautioning against illegal voting and efforts that could affect military ballots.