Hyundai India's share price decreases by 2% during its initial market appearance following a historic IPO.
The stock opened at 1,934 INR ($23) on India's National Stock Exchange, lower than its issue price of 1,960 INR ($23.31). It was currently trading at a 2% decrease, at 1,920 INR ($22.84), at 0431 GMT (12:31 a.m. ET).
Hyundai, India's second-largest carmaker with a 15% market share, experienced a highly successful IPO last week, oversubscribed by over two times. This was majorly driven by institutional investors, but retail participation was hindered due to pricing concerns.
Hyundai's debut on the Mumbai exchange on Tuesday marks its first listing outside its home market of South Korea, and this event coincides with India's equity markets experiencing significant growth.
The two largest IPOs before Hyundai India, Life Insurance Corporation and Paytm parent One97 communications, both listed at a substantial discount.
Despite Hyundai's market valuation being significantly smaller than Maruti Suzuki's $48 billion, analysts have raised concerns regarding the narrower gap when considering their price-to-earnings ratios.
Hyundai was valued at 26 times its projected fiscal 2024 earnings, a figure not far from Maruti's 29 times multiple.
Hyundai views India as a vital growth market, with two manufacturing units and a $5 billion investment, along with plans to invest another $4 billion over the next decade. India, as the third-largest revenue generator for the company globally, behind China and the United States, is a crucial market for the automaker.
Hyundai's decision to list on India's stock market shows its confidence in the country's global standing, contributing to the world's rising economic powerhouses. The success of Hyundai's IPO underscores the interest of international investors in India's growing market.
