New Delhi: Shares of Hyundai Motor India Ltd, the Indian arm of South Korean automaker Hyundai, on Tuesday listed with a discount of over 1 per cent against the issue price of Rs 1,960.

The stock listed at Rs 1,931, reflecting a decline of 1.47 per cent from the issue price on the BSE. Later, the stock made some recovery and hit a high of Rs 1,968.80, up 0.44 per cent. But, the stock again declined 0.74 per cent to trade at Rs 1,945.40.

On the NSE, the stock made its debut at Rs 1,934, down 1.32 per cent.

The company’s market valuation stood at Rs 1,57,807.67 crore during the early trade.

The initial public offer of Hyundai Motor India Ltd got subscribed 2.37 times on the last day of the bidding on Thursday, helped by institutional buyers.

This was the largest IPO in the country, surpassing LIC’s initial share sale of Rs 21,000 crore.

The Rs 27,870 crore initial share sale had a price band of Rs 1,865-1,960 per share.

The initial public offer (IPO) was entirely an Offer For Sale (OFS) of 14,21,94,700 equity shares by promoter Hyundai Motor Company (HMC), with no fresh issue component.

HMIL commenced operations in India in 1996 and currently sells 13 models across segments.

In the equity market, the BSE Sensex traded 295.97 points higher at 81,447.24 and the NSE Nifty quoted 72.35 points up at 24,853.45.

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.

New Delhi/Seoul: Hyundai Motor India is all set to make its stock market debut tomorrow, with shares likely to start trading on the Indian stock market.

This is Hyundai Motor’s first listing outside South Korea and the largest IPO in the history of the Indian stock market. The Indian subsidiary of South Korean automotive giant has surpassed the previous record set by the Life Insurance Corporation of India (LIC) in 2022, which then raised $2.5 billion.

The IPO price band has been fixed at Rs 1,865-Rs 1,960 per share. The IPO is a pure offer for sale (OFS) and the entire proceeds will go to the promoter.

Hyundai Motor India Latest GMP 

As per reports, the Hyundai Motor India latest GMP suggests a 5% premium of Rs 101-107 w.r.t its issue price of Rs Rs 1,865-Rs 1,960 per share apiece, suggesting that the scrip will trade higher on its stock market debut.  It must however be noted that since grey market premium is the parameter driven from unlisted market, the real time value on stock market can vary.

Hyundai Motor India is the second-biggest carmaker in India, following Japan’s Maruti Suzuki. Industry observers are keen on whether the company can enhance its local competitiveness through the listing on the Indian stock market.

The South Korean automotive giant has made aggressive investments in India in recent years.

Last year, Hyundai acquired General Motors’ manufacturing plant in India’s western city of Pune. The company is currently upgrading the facility with a smart manufacturing system, aiming to achieve a production capacity of over 200,000 units annually.