Hyundai Motor India's shares fall 6% in debut trade after record $3.3 billion IPO
Hyundai Motor India's shares fall 6% in debut trade after record $3.3 billion IPO
The two-biggest IPOs prior to Hyundai India – Life Insurance Corporation and Paytm parent One97 communications - both listed at a steep discount
Reuters
Published 22.10.24, 12:15 PM
Hyundai Motor India's shares fell 6% in their market debut on Tuesday, after a tepid response from retail investors to the country's largest ever initial public offering.
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Hyundai Motor Group Chairman Euisun Chung, centre, with Hyundai Motor Company President & CEO Jaehoon Chang, left, and Hyundai Motor India MD Unsoo Kim during the listing ceremony of Hyundai Motor India's IPO at National Stock Exchange (NSE), in Mumbai, Tuesday, Oct. 22, 2024. (PTI)
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The stock listed at 1,934 rupees on the National Stock Exchange, compared to its offer price of 1,960 rupees, and was last trading at 1,860 rupees at 0502 GMT, giving the company a valuation of 1.51 trillion rupees ($17.96 billion).
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Hyundai Motor Group Chairman Euisun Chung with National Stock Exchange (NSE) MD & CEO Ashish Chauhan during the listing ceremony of Hyundai Motor India's IPO at NSE, in Mumbai, Tuesday, Oct. 22, 2024. (PTI)
Hyundai is India's No. 2 carmaker with a 15% market share. Its record $3.3 billion IPO was oversubscribed more than two-fold last week, led largely by institutional investors, but pricing concerns deterred retail participation.
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A Hyundai electric Ioniq 5 is parked at the National Stock Exchange during the listing ceremony of Hyundai Motor India Limited IPO in Mumbai, India, October 22, 2024. (Reuters)
Tuesday's listing in Mumbai is Hyundai Motor's first such debut outside its home market of South Korea and comes at a time when India's equity markets have risen sharply.
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Euisun Chung, Executive Chairman of Hyundai and Chief Executive Officer (CEO) of Hyundai Motor Group, and Ashishkumar Chauhan, Managing Director and Chief Executive Officer of the National Stock Exchange (NSE), pose for a picture during the listing ceremony of Hyundai Motor India Limited IPO at NSE, in Mumbai, India, October 22, 2024. (Reuters)
The two-biggest IPOs prior to Hyundai India – Life Insurance Corporation and Paytm parent One97 communications - both listed at a steep discount.
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Euisun Chung, Executive Chairman of Hyundai and Chief Executive Officer (CEO) Hyundai Motor Group, rings the bell as Ashishkumar Chauhan, Managing Director and Chief Executive Officer of the National Stock Exchange (NSE) of India and Jaehoon Chang, Chief Executive Officer (CEO) and President of Hyundai Motor Company, watch on during the listing ceremony of Hyundai Motor India Limited at NSE, in Mumbai, India, October 22, 2024. (Reuters)
While Hyundai's market valuation is much smaller than Indian market leader Maruti Suzuki's $48 billion, analysts have expressed concerns over the narrower gap when valued by their price-to-earnings ratios.
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The Logo of Hyundai Motor India Limited is seen on a parked car in the company's stockyard, in the outskirts of Ahmedabad, India, October 8, 2024. (Reuters)
The issue had valued Hyundai at 26 times its fiscal 2024 earnings, not far off the 29 times multiple for market leader Maruti.
Tuesday, 22 October 2024
