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The upcoming listing of Hyundai Motor India shares on the stock exchanges on Tuesday, October 22, is anticipated to witness a moderate performance, according to analysts. Despite a strong initial public offering (IPO) subscription, particularly from qualified institutional buyers (QIBs), the retail response was relatively muted, which could impact the initial listing gains. However, Hyundai's strong market position as the second-largest passenger vehicle company in India and its strategic focus on SUVs are viewed as promising factors.
Analysts, such as Narendra Solanki from Anand Rathi Shares and Stock Brokers, believe that the listing could be at par with the IPO price, providing an opportunity for investors who missed out on the initial offering to gain exposure to the stock. Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, suggests that investors with a long-term perspective should consider holding their investments despite potential listing challenges, as the company offers growth prospects. However, Prashanth Tapse, Sr VP Research Analyst at Mehta Equities Ltd, expresses a more cautious outlook, highlighting sluggish demand from retail investors and market concerns about overvaluation, which could lead to a flat or negative market debut.
Hyundai Motor India's leadership in the Indian passenger vehicle market, coupled with its strategic focus on electric vehicles, has drawn attention from investors seeking long-term opportunities. Despite some concerns regarding short-term listing gains due to a subdued grey market premium, analysts remain confident about the company's steady growth prospects, underpinned by industry tailwinds, robust financials, and strong demand for its SUV products. The IPO was priced at Rs 1,865-1,960 per share. While the IPO was an Offer for Sale (OFS), meaning Hyundai Motor India Ltd will not receive any proceeds from the IPO, the company's strong performance and commitment to the Indian market continue to attract investor interest.
Source: Hyundai Motor India shares set for modest listing on Tuesday, say analysts