The shares of Hyundai Motor India Ltd (HMIL) made a lukewarm debut on Tuesday, closing at a discount of nearly 6 per cent against the issue price of ₹1,960. The country’s second largest auto maker listed at ₹1,931 on the BSE, 1.47 per cent lower than the issue price..

It recovered subsequently to touch a high of ₹1,968.80, a gain of 0.44 per cent. However, the momentum could not be sustained and the stock tanked 5.81 per cent to close at ₹1,846.

On the NSE, the stock opened at ₹1,934, down 1.32 per cent. It later finished at ₹1,845 a fall of nearly 5.88 per cent.

At close, the company’s market valuation stood at ₹1.47 lakh crore, making it the fifth most valued auto company. In traded volume terms, 11.72 lakh shares were traded on the BSE and 177.84 lakh shares on the NSE.

“HMIL’s listing is largely in line with expectations. However, the company has strong fundamentals,” Shivani Nyati, head of wealth, Swastika Investmart, said.

“Hyundai is the second-largest passenger vehicle manufacturer in India and its strategic focus on the SUV segment continues to support its long-term growth prospects,” she said.

Analysts said they expected a muted performance as the pricing of the IPO was a tad on the higher side.

Besides, market sentiment is low because of disappointing quarterly results and tepid auto sales.

They, however, pointed out that given HMIL’s product profile, investors with a long-term horizon can look at the stock.

The ₹27,870-crore initial public offering of HMIL was subscribed 2.37 times because of strong participation from institutional investors.

Speaking at the listing ceremony, Hyundai Motor group executive chair Euisun Chung said the South Korean parent is taking the next big step with the IPO of its Indian arm. He pointed out that the share float showed its commitment to the country.

“Today’s IPO shows that HMIL is a key part of India. It demonstrates our commitment to this great nation and ensures that our shareholders and HMIL will continue to grow together,” Chung said.

Tarun Garg, the COO, said its planned capacity expansion at the Talegaon manufacturing facility in Pune at an investment of ₹6,000 crore will give it more headroom for growth in domestic and international markets.