Hyundai Motor India Rises After IPO, Surpassing Market Expectations

Hyundai Motor India shares rose over 4% after debuting on the market, having initially dipped over 7% following its IPO. The Rs 27,870 crore IPO was the largest in India to date. It marked the first automaker's share sale in two decades, with institutional buyers driving subscriptions.

Newly-listed shares of Hyundai Motor India Ltd, the Indian affiliate of the South Korean automotive giant Hyundai, saw a notable increase of over 4% on Wednesday, following a muted debut in the stock market.

Stocks on the Bombay Stock Exchange (BSE) closed at Rs 1,896.70, marking a 4.19% rise. They peaked during the day with a 5.91% increase to Rs 1,928.15. On the National Stock Exchange (NSE), shares concluded trading at Rs 1,900, reflecting a 4.41% uptick, after reaching a 6% surge to Rs 1,928.90 at their highest.

Despite the shares initially slipping over 7% below their issue price of Rs 1,960 upon their debut, the company's market valuation improved significantly, rising Rs 1,824.15 crore to Rs 1,54,114.67 crore. Hyundai's IPO, valued at Rs 27,870 crore, has set a record as India's largest, surpassing Life Insurance Corporation's Rs 21,000 crore offering.

This IPO was a major milestone, being the first by an automaker in two decades, after Maruti Suzuki's listing in 2003. Comprising an Offer For Sale (OFS) of 14,21,94,700 equity shares by promoter Hyundai Motor Company with no fresh issue, the IPO drew substantial interest, largely from institutional investors, who pushed the subscription rate to 2.37 times.

Hyundai Motor India commenced operations in 1996 and currently offers a varied lineup of 13 models across different segments in the Indian market.

(With inputs from agencies.)