Hyundai Motor India Limited (HMIL) was not up to mark on its first trading day on the Indian stock market on 22nd October 2024. The issue of the company’s shares was the expected issue price due to conservative investors’ attitude. The issue price, which was set at ₹1,865 to ₹1,960 per share, saw Hyundai’s mob opening at ₹1,931 at BSE and ₹1,934 at NSE, which was a 1.5% down from upper band of the issue price of Hyundai mob. Today, it was down slightly and closed at 3%, away from the listing price of the first stock.
Hyundai Motor shares open below Issue Price.
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India’s one of the biggest IPO, Hyundai Motor, mobilized around ₹27,870 crore by selling 14.22 crore shares in the company. But the poor show on the first day has been credited to factors such as global economic risk, fluctuating stock markets and the IPO structure, in this case, being an ‘Offer for Sale’ and not a ‘Fresh Issue’. This meant that the money generated could not be directly attributed to business development within Hyundai.
This position would probably frown the investors. However, the initial conditions were far from perfect; still, these analysts see a promising future for Hyundai Motor. The company is India’s second-largest PV maker and has a wide presence in the still-growing SUV market, which could suggest further expansion in the coming years. Speculative players should hold on to the stock because Hyundai’s market outlook and constant management changes may enhance productivity over time.
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