Hyundai Motor India listing: Shares debut on a tepid note
Shares of the country's biggest IPO -Hyundai Motor India- on expected lines made a weak debut with a discount of over 1 per cent over the issue price.
Hyundai Motor India (HMIL) shares on anticipated lines made a weak debut on the bourses on Tuesday (October 22, 2024). As against the IPO issue price of Rs 1,960, HMIL shares debuted at a discount of 1.5 per cent at Rs 1,931 per share on the BSE, while on the NSE it debuted at Rs 1,934, a 1.33 per cent cut.
Long-term investors may continue to hold Hyundai Motor
Shivani Nyati, Head of Wealth, Swastika Investmart said, " the company’s fully priced valuation contributed to the muted debut."
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, continues to support its long-term growth prospects. Investors who entered with a long-term perspective may consider holding the stock, as future performance will likely be driven by the company’s competitive market position and product innovations, added Nyati.
2 global brokerages initiate coverage for up to 26% gains
Nomura and Macquarie initiated coverage on the stock ahead of its listing taking in view the company's strong fundamentals.
Subscription rate
The issue by the auto giant raked in a decent response with an overall subscription rate at 2.37 times the total available shares.
Zee Business Anil Singhvi advised retail investors to avoid Hyundai Motor IPO
The expert suggested that only high-risk investors should subscribe to the IPO, and that should be for the long term.
Difficult to make high listing gains in big IPOs
Hyundai Motor IPO: Singhvi said that it has usually been tough to make money on listing in big IPOs. "It has nothing to do with fundamentals. The best example is that of LIC," he added.
Hyundai based on price-band seeks a higher premium to Maruti
Prashanth Tapse, Senior VP (Research), Mehta Equities said, "As per my readings post price band release, Hyundai Motor India is seeking slightly higher premium to Maruti and lower to M&M based on price earnings ratio while Hyundai stands to be expensive in terms of price to book value. Hyundai India justifies its premium ask considering its leadership in SUV sales, world class brand image followed by better safety ratings, Multi segment growth visibility largely been driven by its popular SUVs, particularly the Creta, Exter, and Venue models in the Indian market."
Hyundai Motor offers steady growth prospects coupled with robust financials
Master Capital Services in its pre-listing note said, "Despite some concerns regarding short-term listing gains due to subdued grey market premium, the company offers steady growth prospects amid industry tailwinds, robust financials and healthy SUV product demand. Hyundai’s leadership in India's passenger vehicle market, along with its strategic focus on electric vehicles makes a compelling investment for long-term investors."