Shares of Hyundai Motor India fell by almost 7% at the start of trading
23 October 2024 11:45
The Indian unit of South Korean automaker Hyundai Motor fell by almost 7% on the first day of trading after the largest initial public offering in India’s history. This is reported by "Komersant Ukrainian" with reference to Reuters.
The automaker offered 142.19 million shares at prices ranging from 1865 Indian rupees ($22.18) to 1960 rupees. The IPO raised 278.56 billion rupees, or $3.3 billion.
on 22 October, at 14:30 local time, the shares were trading at 1842 rupees ($21.91) against the initial public offering price of 1960 rupees.
According to Reuters, the order book for the IPO, which opened on 15 October and closed on 17 October, was oversubscribed by 2.4 times. This is the first IPO of the automaker’s unit outside South Korea.
The agency points out that a drop on the first day is typical for the Indian market. For comparison, insurance company LIC and fintech company Paytm fell by 8-9% after their offerings.
For the long term, leading analysts such as Nomura and Macquarie have made positive forecasts.
The company is estimated to be worth about $19 billion.
Hyundai is the second largest automaker in India (15% of the market). The company has a particularly strong position in the SUV segment, which accounts for 67% of sales.
Shares of Indian competitors have also fallen in recent weeks as car sales slowed after two years of record levels and customers postponed purchases amid persistent inflation.
According to the latest industry data, Hyundai’s sales in India in April-September fell by 2.6% compared to the same period last year, while overall car sales grew by only 0.5%.
