Hyundai Motor India makes weak stock market debut, trading 1.5% lower than IPO price
Shares of Hyundai Motor India made a weak stock market debut on Tuesday, October 22 as the stock opened trading at Rs 1,931 on the BSE, down 1.47 per cent from the Public Offering. Initial ( IPO ) price of Rs 1,960. On the National Stock Exchange, shares of Hyundai Motor India opened trading at Rs 1,934, down 1.32 per cent.
Hyundai Motor India raised Rs 27,870 crore by selling shares through IPO which was India’s largest IPO on record after Life Insurance Corporation (LIC) raised Rs 21,008 crore in 2022. A retail investor was allowed to bid for a minimum of one lot of seven shares up to a maximum of 14 lots. One batch of Hyundai Motor India shares in the IPO was priced at Rs 13,720 at the upper end of the price band.
A day before listing on the stock exchanges, Hyundai Motor India shares were expected to trade on a lukewarm note, as indicated by its gray market premium. In the gray market, which is also known as IPO futures market, Hyundai India shares were being offered at a premium of Rs 67, market analysts said.
Hyundai Motor India IPO A mixed response from investors was observed as the portion reserved for large investors, who fall in the category of qualified institutional buyers, was booked 7 times, while the pies reserved for retail and non-institutional investors were booked 60 times. percent and 50 percent respectively.
“Despite the discounted listing, Hyundai Motor India’s strong fundamentals, being India’s second largest passenger vehicle manufacturer and its strategic focus on the SUV segment, continue to support its long-term growth prospects. Investors who came in with a long-term outlook “might consider holding the stock as future performance will likely be driven by the company’s competitive position in the market and product innovations,” said Shivani Nyati, head of wealth at Swastika. Investmart Ltd.
After weak trading, Hyundai Motor India shares continued their downward journey as the stock fell as much as 6 per cent from the IPO The price hit an intraday low of Rs 1,844 at 10:21 am on the National Stock Exchange.
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