Hyundai Motor India's IPO: A Mixed Market Debut
Hyundai Motor India's shares debuted with a 2% decline on the National Stock Exchange, largely due to tepid interest from retail investors in their record $3.3 billion IPO. Despite strong backing from institutional investors, pricing concerns deterred retail participation, leading the stock to open below the issue price.
Hyundai Motor India faced a challenging market debut as its shares fell by 2% on the National Stock Exchange. The company's record $3.3 billion initial public offering struggled to attract retail investors, despite being oversubscribed by institutional investors.
Listed at 1,934 rupees against the issue price of 1,960 rupees, Hyundai's stock was trading at 1,920 rupees early Tuesday morning. This marks the company's first listing outside its home country of South Korea, occurring amidst a bullish period in India's equity markets.
Despite being India's second-largest car manufacturer with a market share of 15%, Hyundai's market valuation raised concerns due to its pricing, which was comparable to market leader Maruti Suzuki. Analysts pointed out the narrower valuation gap when considering the price-to-earnings ratio.
(With inputs from agencies.)