Hyundai Motor India Shares Plunge at Historic IPO Debut

Hyundai Motor India's shares experienced a lackluster debut, closing over 7% below the issue price of Rs 1,960. Despite initial recovery attempts, the stock struggled amidst a volatile market, reflected by declines in the BSE Sensex and NSE Nifty. The IPO marked the largest in India, surpassing LIC's historic offering.

Shares of Hyundai Motor India Ltd, the subsidiary of the South Korean automaker, experienced a lukewarm entry into the stock market, ending over 7% lower than the issue price of Rs 1,960. The initial listing on the BSE at Rs 1,931 saw a slight recovery, peaking at Rs 1,968.80 before slumping to a closing figure of Rs 1,820.40, marking a 7.12% decline.

Similarly, on the NSE, Hyundai's stock witnessed a debut at Rs 1,934, down 1.32% from its issue price. It plummeted during intraday trading to Rs 1,807, eventually settling at Rs 1,819.60, a 7.16% drop. The company's market valuation was pegged at Rs 1,47,914.98 crore on its first trading day with significant volume, including 15.87 lakh shares on the BSE and 286.20 lakh on the NSE.

Despite the poor listing, financial experts like Shivani Nyati emphasized Hyundai Motor India's solid fundamentals and robust long-term growth forecasts, supported by its status as India's second-largest passenger vehicle manufacturer and its focus on the SUV market. The IPO, the country's largest ever, surpassed the previous record held by LIC's offering. The fully subscribed offer, led by institutional buyers, marked the first automaker IPO in over two decades since Maruti Suzuki's 2003 listing.

(With inputs from agencies.)