Hyundai Motor India Shares Make a Modest Stock Market Debut

Shares of Hyundai Motor India Limited made a lukewarm debut on the stock exchanges. The company’s stock opened at ₹1,934 on the National Stock Exchange (NSE), which is a 1.3% discount to its issue price of ₹1,960 per share. On the Bombay Stock Exchange (BSE), the stock was listed at ₹1,931, marking a 1.5% dip below its initial public offering (IPO) price.

Hyundai Motor’s IPO, valued at ₹27,870.16 crore, is India’s largest public offering to date. The IPO was open for subscription between October 15 and October 17, 2024, and was priced between ₹1,865 and ₹1,960 per share. Despite its high profile, the offering saw a moderate response, closing with 2.37 times the bids available. The retail and non-institutional investor categories were under-subscribed, while the qualified institutional buyer segment was fully subscribed with 6.97 times the available bids.

The IPO was an offer for sale (OFS) involving the sale of 14.22 crore shares, with no fresh equity being issued. As a result, the company itself will not receive any proceeds from the offering; instead, the funds will go directly to the selling shareholders. Hyundai Motor’s promoter shareholding will be reduced to 82.5% post-listing.

Brokerages were optimistic about the stock’s future. Nomura gave Hyundai Motor stock a ‘buy’ rating, setting a target price of ₹2,472, indicating a potential upside of over 26%. The brokerage believes that Hyundai’s focus on premiumization and technology-driven growth will lead to sustained earnings growth. Similarly, Macquarie issued an ‘outperform’ rating, with a target price of ₹2,235, citing Hyundai’s favourable product portfolio and market position as drivers of medium-term growth.

Despite the flat debut, Hyundai Motor India, part of the world’s third-largest auto manufacturer, is well-positioned for long-term growth, driven by new model launches, strong domestic demand, and improving margins.