Hyundai Motor India shares fall 3 pc after lackluster stock market debut
The stock opened at Rs 1,931 on the Bombay Stock Exchange (BSE), lower than the issue price of Rs 1,960, reflecting a decline of 1.5 per cent. On the National Stock Exchange (NSE), shares listed at Rs 1,934. Following the initial trading, Hyundai's share price further fell 3 per cent.
ANI
Oct 22, 2024 10:32 IST
Mumbai (Maharashtra) [India], October 22 (ANI): Hyundai Motor India Limited (HMIL) experienced a disappointing debut on the stock market on Tuesday, with shares listing below their issue price.
The stock opened at Rs 1,931 on the Bombay Stock Exchange (BSE), lower than the issue price of Rs 1,960, reflecting a decline of 1.5 per cent. On the National Stock Exchange (NSE), shares listed at Rs 1,934. Following the initial trading, Hyundai's share price further fell 3 per cent.
The initial public offering (IPO) of India's largest IPO Hyundai Motor India raised Rs 27,870.16 crores through an offer for sale of 14.22 crore shares.
The IPO's pricing range was set between Rs 1,865 and Rs 1,960 per share, with the final issue price settled at the higher end of the band, Rs 1,960. The subscription period for the IPO was open from October 15 to October 17.
Hyundai Motor India's shares were allotted to successful bidders on October 18, followed by credit to demat accounts on October 21. The company's shares began trading on October 22, 2024, across both BSE and NSE.
Shivani Nyati, Head of Wealth, Swastika Investmart Ltd., said, "Despite the discounted listing, Hyundai Motor India's strong fundamentals, being the second-largest passenger vehicle manufacturer in India and its strategic focus on the SUV segment, continue to support its long-term growth prospects."
She added, "Investors who entered with a long-term perspective may consider holding the stock, as future performance will likely be driven by the company's competitive market position and product innovations."
Despite Hyundai's strong market presence and robust financial performance, several factors may have contributed to the weak debut.
The broader market sentiment has been volatile, with investors showing caution toward new listings due to uncertainties in the global economy and the Indian market.
Additionally, since the IPO was structured as an offer for sale, the proceeds of the IPO did not contribute to business expansion, which may have impacted investor sentiment. (ANI)
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