Hyundai India’s shares fall 2% in debut trade after record $3.3bn IPO

22 October 2024 - 08:19 By Reuters
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Hyundai is India's No 2 carmaker with a 15% market share.
Hyundai is India's No 2 carmaker with a 15% market share.
Image: Metin Aktas/Anadolu Agency/Getty Images

Hyundai Motor India's shares fell 2% in their market debut on Tuesday after a tepid response from retail investors to the country's largest ever initial public offering.

The stock listed at 1,934 rupees (about R404) on the National Stock Exchange, compared to its issue price of 1,960 rupees (about R410), and was last trading down 2% at 1,920 rupees (about R401) at 4.31 GMT.

Hyundai is India's No 2 carmaker with a 15% market share. Its record $3.3bn (R58.05bn) IPO was oversubscribed more than two-fold last week, led largely by institutional investors, but pricing concerns deterred retail participation.

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.

The two-biggest IPOs prior to Hyundai India — Life Insurance Corporation and Paytm parent One97 communications — both listed at a steep discount.

While Hyundai's market valuation is much smaller than Indian market leader Maruti Suzuki's $48bn (R844.38bn), analysts have expressed concerns over the narrower gap when valued by their price-to-earnings ratios.

The issue had valued Hyundai at 26 times its fiscal 2024 earnings, not far off the 29 times multiple for market leader Maruti.


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