Hyundai Motors India IPO debuts with a loss, declines more than 5% after listing

Hyundai Motors India made its debut on the Indian stock exchanges on Tuesday, October 22, but the much-anticipated listing failed to impress investors. The company’s shares opened at Rs 1,934.00 per share on the National Stock Exchange (NSE) and Rs 1,931.00 on the Bombay Stock Exchange (BSE). Both listings were below expectations, with a decline of 1.30 percent on the NSE and 1.47 percent on the BSE at the start of trading.

The initial public offering (IPO) was expected to generate significant interest, but the listing day proved disappointing for many investors. Instead of yielding profits, Hyundai Motors’ IPO left investors with a loss, particularly on the BSE, where they faced a negative premium of Rs 29.00 per share. Per lot, this translated to a total loss of Rs 203 for investors holding 29 shares.

The stock market debut continued to struggle as the day progressed. Hyundai Motors' shares further declined by 5.6 percent on the NSE, hitting a day-low of Rs 1,844 per share. By mid-trading session, the stock was trading around Rs 1,896.00 on the NSE, down by nearly 2 percent (1.96 percent), offering no relief to investors who had been expecting better returns from the company’s listing.

Despite the lackluster listing, Hyundai Motors' IPO had seen decent subscription figures during the offering period. The issue was subscribed 2.37 times overall, with over 23.63 crore shares bid on, compared to the 9.97 crore shares available for subscription.

Retail investors, however, showed less enthusiasm for the issue, with bids totaling only 0.50 times the reserved 4.94 crore shares in the retail individual investors (RIIs) category. In the non-institutional investors (NIIs) category, applications were submitted for 1.27 crore shares, accounting for 0.60 times the reserved quota of 2.12 crore shares.

Qualified Institutional Buyers (QIBs) showed the most interest, bidding 6.97 times the reserved portion of 2.82 crore shares. A total of 19.72 crore shares were put up for bids by QIBs, indicating strong institutional demand, although this did not translate into an optimistic market debut.

Hyundai Motors India’s listing left investors with little to celebrate. The stock failed to provide any returns, with the negative premium and ongoing decline in share value. The company, a passenger vehicle giant, was listed with a loss of Rs 29.00 per share on the BSE, adding to the disappointment of those who had hoped for a better debut.

As the stock continues to trade under pressure, many investors and analysts are closely watching Hyundai Motors’ next moves. The weak opening highlights the volatility of market sentiment and serves as a reminder of the unpredictability of stock listings, even for well-established companies in the automotive sector.