India’s largest IPO makes muted debut

New Delhi: Hyundai Motor India Ltd has become the country’s fifth most valuable auto firm by market valuation in its debut trade on Tuesday. Shares of Hyundai Motor India Ltd, the Indian arm of South Korean automaker Hyundai, listed at Rs1,931, reflecting a decline of 1.47 per cent against the issue price of Rs1,960 on the BSE earlier in the day. The stock slumped 7.80 per cent to Rs1,807.05 during the day and finally ended at Rs1,820.40 apiece, down 7.12 per cent. The company’s market valuation (mcap) stood at Rs1,47,914.98 crore at the close of trade on the BSE. On the NSE, the stock ended at Rs1,819.60, a decline of 7.16 per cent. Maruti Suzuki India is the most valued domestic auto firm with a market capitalisation (mcap) of Rs3,74,796.16 crore. Mahindra & Mahindra comes second with a market valuation of Rs3,58,583.97 crore, followed by Tata Motors (Rs3,23,669.61 cr), Bajaj Auto (Rs2,89,274.58 cr) and Hyundai Motor India (Rs1,47,914.98 cr). Other leading automakers are Eicher Motors with a mcap of Rs1,30,415.90 cr and TVS Motor Company (Rs1,27,007.41 cr).

“Hyundai Motor India Ltd’s IPO listed at Rs1,934, marking a 1.33 per cent loss against its issue price of Rs1,960, which was largely in line with expectations. 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 Ltd. In the equity market, the benchmark indices gave up early gains and were trading lower. The BSE Sensex traded 243.19 points lower at 80,962.92 and the NSE Nifty quoted with a decline of 74 points at 24,705.45.

The initial public offer of Hyundai Motor India Ltd got subscribed 2.37 times on the last day of the bidding on Thursday, helped by institutional buyers. This was the largest IPO in the country, surpassing LIC’s initial share sale of Rs21,000 crore. The Rs 27,870 crore initial share sale had a price band of Rs1,865-1,960 per share. IPO was entirely an OFS of 14,21,94,700 equity shares by promoter Hyundai Motor Company (HMC), with no fresh issue component.