NEW DELHI: Hyundai Motor India's shares had a lackluster debut on the stock market, settling at Rs 1,820.40, more than 7 percent lower than the issue price of Rs 1,960.
The stock opened at Rs 1,931 on the BSE, down by 1.47 percent from the issue price. Despite a brief recovery, reaching a high of Rs 1,968.80, the stock failed to sustain momentum and plummeted to Rs 1,807.05 during the trading session. Meanwhile, the stock debuted at Rs 1,934 on NSE and fell to an intraday low of Rs 1,807.
At the listing ceremony in Mumbai, Hyundai Motor Group executive chair Euisun Chung said, "Our journey in India began in 1996 and now, 28 years later, we are going public by launching India's largest IPO in history."
He added, "From the beginning, we knew that India was the future. Today's IPO demonstrates our commitment to this great nation."
The company became the 5th most valuable auto company with a market capitalization of Rs 1,47,914.98 crore.
Unsoo Kim, managing director of Hyundai Motor India, stated two weeks ago that the South Korean company would use the IPO capital to invest in "new products" and research and development.
"Despite the discounted listing, Hyundai Motor India's strong fundamentals, being the second-largest passenger vehicle manufacturer in India and its strategic focus on the SUV segment, continue to support its long-term growth prospects," Shivani Nyati, head of wealth at Swastika Investmart Ltd, said.
The broader market indices, BSE Sensex and NSE Nifty, surrendered early gains and closed sharply lower, with the Sensex falling 930.55 points (1.15 percent) to 80,220.72 and the Nifty dropping 309 points (1.25 percent) to 24,472.10.
Hyundai Motor India Ltd's IPO, which closed on Thursday, received a 2.37 times subscription, primarily driven by institutional investors. The Rs 27,870 crore IPO, with a price band of Rs 1,865-1,960 per share, was the largest in the country, surpassing LIC's Rs 21,000 crore initial share sale. The IPO was entirely an Offer For Sale (OFS) by promoter Hyundai Motor Company (HMC), with no fresh issue component. HMIL, which began operations in India in 1996, currently offers 13 models across various segments.
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