Hyundai Motor IPO set to debut; here’s what to expect

According to an analyst, investors who may have skipped participating during the Hyundai Motor IPO could still be able to invest in the share on the listing day.

Hyundai Motor IPO is poised for its much-anticipated debut on the stock exchanges on Tuesday, October 22, following the closure of its Rs 27,870-crore IPO.

While the initial share sale saw a muted response from retail investors, strong demand from Qualified Institutional Buyers (QIBs) drove the overall subscription to 6.97 times.

Strong Market Position of Hyundai Motor India

As the second-largest passenger vehicle manufacturer in India, Hyundai Motor India holds a significant market position, particularly in the growing SUV segment.

Analysts highlight that the company’s strategic focus on SUVs aligns with current market trends, positioning it well for future growth. However, the sheer size of the IPO and broader market sentiment may limit immediate listing gains, especially for short-term investors.

Analysts’ Insights on the IPO Listing

• Narendra Solanki, Head of Fundamental Research at Anand Rathi Shares and Stock Brokers, noted that the listing could be “at par,” indicating that initial price gains might be limited. He suggested that investors with a long-term outlook should consider taking advantage of any price fluctuations on listing day. “For those who missed the IPO, listing day could provide an opportunity to invest if favorable conditions arise,” Solanki said.

• Shivani Nyati, Head of Wealth at Swastika Investmart, advised long-term investors to remain patient. She believes that despite possible short-term challenges, holding the stock after listing could yield significant growth over time, particularly for those with a long-term investment strategy.

Outlook for Long-Term Investors

Given Hyundai’s strong foothold in the Indian automotive market and its focus on SUVs, the IPO has attracted attention. While immediate listing gains may be modest, long-term investors may benefit from the company’s strategic positioning and potential for future growth.