Hyundai Motor India shares set for modest listing on Tuesday, say analysts

Hyundai Motor India shares set for moderate listing on Oct 22; here's what analysts say

Hyundai Motor India shares will be listed on the exchanges on Tuesday, October 22 after the Rs 27,870-crore issue saw a muted retail response to its initial share sale. However, strong QIB demand compensated for this with 6.97 times subscription.

Analysts believe Hyundai Motor India holds a strong market position as the second-largest passenger vehicle company in India, and its strategic focus on SUVs is promising. However, the overall market sentiment and IPO size may limit listing gains.

Narendra Solanki, Head Fundamental Research - Investment Services, Anand Rathi Shares and Stock Brokers, said, "We believe listing could be at par for the IPO and since we had long term subscribe rating to the issue so long term investors who missed the opportunity in the IPO may look to get exposure on the same if opportunity provides during the listing day."

"For investors who may have missed the chance to participate during the IPO, there could still be an opportunity to invest in the stock on the listing day. Should the market present a favorable opportunity, long-term investors can consider gaining exposure to the stock as it debuts on the exchange, taking advantage of any fluctuations or price movements during its initial trading sessions," he added.

Shivani Nyati, Head of Wealth, Swastika Investmart Ltd noted that investors with a long-term outlook and the ability to navigate potential listing challenges may consider holding onto their investments post-listing for potential future growth.

Hyundai India IPO GMP rebounds to green a day ahead of listing

"Considering sluggish undersubscription demand from NII’s & Retail investors and market sentiments on overvaluation concern followed by lower demand and over supply scenario in the sector, there is a very high possibility of flat to negative market debut," said Prashanth Tapse Sr VP Research Analyst at Mehta Equities Ltd.

The GMP indicates discounting upon its listing on the BSE and NSE on October 22.
Master Capital Services Ltd added, Hyundai’s leadership in India's passenger vehicle market, along with its strategic focus on electric vehicles, makes a compelling investment for long-term investors.

Hyundai Motor India is the second-largest automobile manufacturer in India by holding a 15 percent market share. Despite some concerns regarding short-term listing gains due to subdued grey market premium, the company offers steady growth prospects amid industry tailwinds, robust financials and healthy SUV product demand, analysts believe.

The IPO had a price band of Rs 1,865-1,960 per share.

Since the public issue is completely an OFS, Hyundai Motor India Ltd, the second largest carmaker in India after Maruti Suzuki, will not receive any proceeds from the IPO.

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