Hyundai Motor India Shares Slip 1.3% On Market Debut.
Hyundai Motor India’s shares dropped by 2% on their market debut today following a lukewarm response from retail investors to the country’s largest-ever initial public offering. The company listed on the National Stock Exchange (NSE) at Rs 1,934 and the Bombay Stock Exchange (BSE) at Rs 1,931, a 1.33% and 1.47% discount from the issue price of Rs 1,960 on Tuesday. Hyundai Motor India’s Rs 27,870-crore Initial Public Offering is India’s largest IPO. The company sold 14.2 crore shares at Rs 1,865-1,960 per share.
This offer was entirely an offer for sale (OFS) means that the company won’t receive any proceeds. Also, Hyundai Motor India is India’s second-largest OEM with a 14.6% market share. In September, it sold 64,201 units down 10% year-on-year and from January to September 2024, it sold 577,000 units flat compared to last year. The IPO closed with decent demand but less than expected garnering 2.37 times bids. Retail investors and non-institutional investors segments were not fully subscribed however, qualified institutional buyers were fully subscribed 6.97 times.
Hyundai lists at a 1.4% discount.
What a roller coaster ride.For such a big ipo and so many negative sentiments, this looks like a good listing. We had expected -a 5% to 8% profit range, this falls in the middle.
Im holding as of now, will watch Price Action at 10 am and start… pic.twitter.com/mvR0lpzG4U
— Aadesh Jain – IPOs and more (@adeshjainj) October 22, 2024
It was said that Hyundai Motor India plans to launch the Creta EV in 2025 and may set up a third plant in India. Hyundai Motor Group Executive Chair Euisun Chung met with Indian Prime Minister Narendra Modi in Delhi on Monday to discuss this collaboration and expansion between the Indian government and Hyundai Motor Group, as well as future developments in India’s automotive industry. This meeting occurred ahead of this initial public offering (IPO) today which was set to be the country’s largest ever aiming to raise $3.3 billion.
The Hyundai Motor Group Executive Chair, Mr Euisun Chung met the PM of India, Mr Narendra Modi and discussed subjects related to the future of mobility. Due to India’s diverse market & reformist approach, Hyundai attaches great priority to working closely with India.(1/3) pic.twitter.com/iAfuWqguja
— Hyundai India (@HyundaiIndia) October 21, 2024
Talking about last year’s performance, Hyundai Motor India’s revenue grew 16% between March 31, 2023, and March 31, 2024, while profit after tax (PAT) increased 29%. The company has sold nearly 12 million passenger vehicles domestically and through exports.
Hyundai Motor India Limited is part of the Hyundai Motor Group which is the world’s third-largest auto original equipment manufacturer (OEM). The company produces reliable, feature-rich vehicles with 1,366 sales points and 1,550 service points across India. It has sold nearly 12 million passenger vehicles domestically and through exports and the revenue grew 16% between March 31, 2023, and March 31 2024.
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