Hyundai Motor India is set to make its much-anticipated debut on the Indian stock market today, October 22, 2024. The company’s shares will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), following its initial public offering (IPO) that took place from October 15 to 17. Despite being India’s largest IPO, raising ₹27,870 crore, the demand for Hyundai shares has been muted, leading analysts to predict a tepid market debut.
Hyundai IPO Listing Details
Hyundai Motor India shares will be part of the Special Pre-open Session (SPOS) today, with trading commencing at 10:00 AM. The IPO was fully subscribed at 2.37 times, with bids for 23.63 crore equity shares against an offer of 9.97 crore shares. However, the retail investor segment saw only 50% subscription, while non-institutional investors (NIIs) subscribed to 60% of their allocated portion. The qualified institutional buyers (QIBs) portion was oversubscribed by an impressive 6.97 times, indicating strong interest from large investors.
Grey Market Premium (GMP)
As the listing day arrives, the grey market premium (GMP) for Hyundai shares is currently in the range of ₹65 to ₹70 per share. This suggests that the shares are expected to list at around ₹2,025 to ₹2,030, which is a modest premium of approximately 3.5% over the IPO price of ₹1,960. Analysts have noted that while there may be some initial gains, overall sentiment appears cautious due to sluggish demand from retail and non-institutional investors.
Expert Opinions
Market experts are signaling a muted debut for Hyundai Motor India shares. Prashanth Tapse, Senior VP Research at Mehta Equities Ltd., indicated that due to sluggish undersubscription from retail and NIIs, along with concerns over high valuations and market sentiment, there is a high possibility of a flat to negative opening. He advises investors to hold their positions despite potential short-term volatility.Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., echoed similar sentiments by stating that while Hyundai holds a strong market position as the second-largest passenger vehicle manufacturer in India, the current market conditions may limit immediate listing gains. She suggests that long-term investors should consider holding onto their investments for future growth potential.
Should I Buy or Sell?
Given the current market dynamics and expert opinions, potential investors need to assess their risk appetite before making any decisions regarding Hyundai Motor India shares. If you are a long-term investor with confidence in Hyundai’s growth trajectory in the Indian automotive sector, holding onto your shares post-listing could be a prudent strategy. The company’s robust fundamentals and strategic focus on SUVs may present opportunities for future gains.However, if you are a short-term trader or risk-averse investor, it may be wise to adopt a cautious approach. Analysts anticipate a flat to negative debut due to muted demand and concerns regarding overvaluation in the sector. In this scenario, waiting for more favorable conditions or price stabilization before making any buying decisions could be beneficial.
Disclaimer: The views and recommendations expressed in this article are those of individual analysts and brokerage firms. Investors are advised to consult certified financial experts before making any investment decisions.
As Hyundai Motor India prepares for its stock market debut today, all eyes will be on how its shares perform in light of the current market conditions and investor sentiment. Regular updates will follow as more information becomes available regarding this significant event in India’s capital markets.
