Hyundai’s ₹27,000 Cr IPO Crashes on Debut—What Went Wrong?

Hyundai Motor India made history with India’s largest-ever IPO, raising ₹27,000 crore ($3.3 billion). However, its market debut was weaker than expected, with the stock listing at ₹1,934, 1.3% below its issue price of ₹1,960, and later slipping nearly 13% during early trading.

Key Highlights:

• Market Performance: Opened at ₹1,934, closed at ₹1,819—down 7% on Day 1.
• Subscription Trends: IPO was oversubscribed 2x, driven by institutional investors, but retail demand was weak at 0.5x.
• Investor Concerns:
  • High valuation raised skepticism.
  • Slowdown in India’s auto sector impacted sentiment.
  • Global economic uncertainty added pressure.
• Hyundai’s Strength: India’s second-largest carmaker (15% market share), known for strong demand and brand reputation.
• Future Plans: Hyundai aims to invest in electric vehicles (EVs), expand R&D, and introduce new models to maintain market dominance.

What’s Next?

Despite the weak debut, Hyundai’s strong fundamentals and future growth plans could help stabilize its stock over time. Investors will be watching how the company adapts to the evolving auto market and broader economic conditions.

Acknowledgment:
Sources: Upstox, while the content has been independently crafted by the Motorpark team.

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