Hyundai Motor India lists at a 1.3% discount, continuing the trend of big IPOs making a bad debut

• Hyundai Motor India was listed at a discount of 1.3% to the issue price on Tuesday.
• The company’s shares were listed at ₹1,934 on NSE, against the issue price of ₹1,960.
• This is the sixth IPO above ₹10,000 crore to list at a discount.

Hyundai Motor India, which recently wrapped up the country’s biggest IPOs listed at a discount. The company’s shares were listed at a price of ₹1,934 on the National Stock Exchange, a discount of 1.3% to the issue price. The shares debuted at a discount of 1.48% at ₹1,931 on the BSE.

The company's market valuation stood at ₹1,57,807.67 crore during the early trade. The shares of Hyundai were trading at ₹1,870 on NSE at 10:30, a further decline of 4.5%.


Hyundai raised ₹27,870 crore from the IPO and while non-institutional investors (NII) and retail investors were cautious of the IPO, qualified institutional buyers (QIBs) bet big on the company.

Hyundai had set a price band of ₹1865 to ₹1,960 per share for its IPO. The company’s shares were subscribed 2.37 times.

The Hyundai IPO was entirely an offer for sale (OFS), with the company not receiving anything from it. The entire funds raised will go to Hyundai Global, the South Korean parent company.

"Considering the tepid interest from IPO investors, the Hyundai India the largest IPO listing was well below the issue price (Rs 1960) in line with our pre IPO expectations. NII's & retail stayed back with reasons like valuation concern, followed by 100% offer-for-sale (OFS) component without any fresh issue leaving nothing on table for new investors to gain and industry concern on high inventory across the sector and slowing demand in the last ~3-4 months and short term auto trend still looks dull and weak," said Prashanth Tapse, Senior VP (Research), Mehta Equities.

"Despite the discounted listing, Hyundai Motor India's strong fundamentals, being the second-largest passenger vehicle manufacturer in India and its strategic focus on the SUV segment, continue to support its long-term growth prospects,” said Shivani Nyati, Head of Wealth, Swastika Investmart.

"Investors who entered with a long-term perspective may consider holding the stock, as future performance will likely be driven by the company's competitive market position and product innovations,” Nyati added.

Hyundai continues the trend of big IPOs listing at a discount

Hyundai has continued the trend of big IPOs failing to make a good debut in the primary market. The automaker has become the sixth company, out of seven companies to list at a discount when looking to raise more than ₹10,000 crore.

Hyundai in India

Hyundai, which entered the Indian market in 1996 is one of the top automakers in India, moving between the second and third spots. The company emerged as the second biggest automaker in September 2024.

The Indian market contributes to around 15% of the company’s global sales and is the third biggest market for the company after the United States and South Korea.

The company has already invested around $5 billion in the country and plans to invest an additional $4 billion over the next few years.

This story is developing…

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