Hyundai India's Record-Breaking IPO: A Mixed Investment Tale

Hyundai Motor India launches a record $3.3-billion IPO, concluding with complete subscription by institutional investors. Retail investors remain cautious due to pricing concerns, overshadowing positive market trends. The IPO fortifies India's equity capital presence, but valuation worries linger, with shares set to debut on October 22.

Hyundai Motor India's record-breaking $3.3-billion Initial Public Offering (IPO) concluded with overwhelming institutional investor support on its last day, despite retail hesitation over pricing. This IPO, India's largest and second-largest globally this year, reflects the robust Indian equity market surge.

Valuating at $19 billion, Hyundai India positions itself at 40% of its South Korean parent. While institutional investors, including foreign entities and domestic financial bodies, showed strong demand by bidding multiple times the allocated shares, retail investors displayed caution due to valuation anxieties and industry uncertainties.

India's IPO scene has witnessed a significant boost with over $9 billion raised this year, surpassing last year's total. Yet, the underwhelming retail response to Hyundai's valuation highlights concerns within an Indian car market grappling with slowed sales and inflation fears.

(With inputs from agencies.)