Hyundai Motor India Ltd has become the country’s fifth most valuable auto firm by market valuation in its debut trade on Tuesday.
Euisun Chung, Executive Chairman of Hyundai and Chief Executive Officer (CEO) Hyundai Motor Group, rings the bell as Ashishkumar Chauhan, Managing Director and Chief Executive Officer of the National Stock Exchange (NSE) of India and Jaehoon Chang, Chief Executive Officer (CEO) and President of Hyundai Motor Company, watch on during the listing ceremony of Hyundai Motor India Limited at NSE, in Mumbai. Photograph: Francis Mascarenhas/Reuters
Shares of Hyundai Motor India Ltd, the Indian arm of South Korean automaker Hyundai, listed at Rs 1,931, reflecting a decline of 1.47 per cent against the issue price of Rs 1,960 on the BSE earlier in the day.
Euisun Chung, Executive Chairman of Hyundai and Chief Executive Officer (CEO) of Hyundai Motor Group, presents a model of the Hyundai Ioniq 5 to Ashishkumar Chauhan, Managing Director and Chief Executive Officer of the National Stock Exchange (NSE) during the listing ceremony of Hyundai Motor India Limited. Photograph: Francis Mascarenhas/Reuters
The stock slumped 7.80 per cent to Rs 1,807.05 during the day and finally ended at Rs 1,820.40 apiece, down 7.12 per cent.
The company’s market valuation stood at Rs 1,47,914.98 crore at the close of trade on the BSE.
On the NSE, the stock ended at Rs 1,819.60, a decline of 7.16 per cent.
Maruti Suzuki India is the most valued domestic auto firm with a market capitalisation (mcap) of Rs 3,74,796.16 crore.
Mahindra & Mahindra comes second with a market valuation of Rs 3,58,583.97 crore, followed by Tata Motors (Rs 3,23,669.61 crore), Bajaj Auto (Rs 2,89,274.58 crore) and Hyundai Motor India (Rs 1,47,914.98 crore).
A Hyundai electric Ioniq 5 is parked at the National Stock Exchange during the listing ceremony of Hyundai Motor India Limited IPO. Photograph: Francis Mascarenhas/Reuters
Other leading automakers are Eicher Motors with a mcap of Rs 1,30,415.90 crore and TVS Motor Company (Rs 1,27,007.41 crore).
“Hyundai had a lacklustre listing and closed with a loss of 7 per cent from the issue price,” said Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services Ltd.
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 biggest IPO in the country, surpassing LIC’s initial share sale of Rs 21,000 crore.
“Hyundai Motor India Ltd’s IPO listed at Rs 1,934, marking a 1.33 per cent loss against its issue price of Rs 1,960, which was largely in line with expectations.
Photograph: Francis Mascarenhas/Reuters
“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,” Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, said.
The Rs 27,870 crore initial share sale had a price band of Rs 1,865-1,960 per share.
This was the first initial share sale by an automaker in over two decades, following Japanese carmaker Maruti Suzuki’s listing in 2003.
The initial public offer (IPO) was entirely an Offer For Sale (OFS) of 14,21,94,700 equity shares by promoter Hyundai Motor Company (HMC) with no fresh issue component.
HMIL commenced operations in India in 1996 and currently sells 13 models across segments.
