Hyundai Motor India’s stock debuted below expectations on October 22, 2024, listing at Rs.1,931 on the BSE and Rs.1,934 on the NSE, compared to its issue price of Rs.1,960. Despite raising Rs.27,870 crore through the IPO, market sentiment remained cautious, leading to a 3% drop in the company’s share price during initial trading. The offer, structured as an offer for sale, meant that no fresh capital was raised for business expansion, contributing to investor concerns.
Analysts believe several factors contributed to this lackluster debut. Weak global market conditions, coupled with economic uncertainty, have made investors more risk-averse, impacting Hyundai’s listing. The company, being India’s second-largest passenger vehicle manufacturer, enjoys strong fundamentals, but market volatility affected its stock performance.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd., pointed out that the company’s long-term growth prospects remain intact despite the soft opening. “Hyundai’s focus on the SUV segment and its competitive market position continue to support its strong fundamentals. Investors with a long-term perspective should consider holding the stock, as product innovations and market expansion will likely drive future growth,” she said.
Despite Hyundai’s strong brand and product lineup, the broader market volatility and the absence of new capital raised through the IPO dampened the immediate outlook for the stock. Experts expect Hyundai’s performance to stabilize in the coming months, especially with its planned strategic initiatives in electric vehicles (EVs) and new product launches.
While the stock market debut was not as strong as anticipated, Hyundai’s market dominance and strategic focus in high-growth segments provide optimism for long-term investors willing to navigate short-term volatility.
