Hyundai Motor India Ltd shares further extended their losses by over 6 percent on October 22 after it made a muted market debut against the issue price of Rs 1,960.
Hyundai India share was listed at Rs 1,931 per share on the BSE, reflecting a decline of 1.47 per cent from the issue price on the BSE. Later, the stock made some recovery and hit a high of Rs 1,968.80, up 0.44 per cent. But, the counter failed to carry the momentum and further tanked 6.12 per cent to Rs 1,840 apiece on the BSE.
Shares of the Indian arm of South Korean automaker made its debut at Rs 1,934, down 1.32 per cent on the NSE. Later, in the trade shares of the firm tumbled 6 per cent to Rs 1,842.
The company's market valuation stood at Rs 1,50,303.85 crore on the NSE at around 2.20 PM against Rs 1,52,290.52 crore during the morning trade, a decline of 1986.67 crore in market cap.
In traded volume terms, 13.99 lakh shares of the firm were traded at the BSE and 2.31 crore shares on the NSE.
"Despite the discounted listing, Hyundai Motor India's strong fundamentals, being the second-largest passenger vehicle manufacturer in India and its strategic focus on the SUV segment, continue to support its long-term growth prospects," said Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.
Narendra Solanki, Head Fundamental Research - Investment Services, Anand Rathi Shares and Stock Brokers, noted 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.
Hyundai GMP indicates muted listing, analysts advise waiting for better entry
Analysts suggest letting initial supply pressures ease before considering any entry, recommending investors look for a significant decline before buying in.
Analysts also highlight that market conditions have softened in recent months, cooling the IPO euphoria seen earlier. The Hyundai IPO, being one of the largest ever, may have further strained market liquidity. Additionally, its size implies a higher chance of share allotment for retail investors, which has dampened the GMP as demand appears absorbed by the IPO itself.
Meanwhile, two major brokerage notes have issued Buy recommendations on the car maker with target prices of over 20 percent.
Motilal Oswal has placed a target of Rs 2,345 on Hyundai Motor India (HMIL). Nomura too has initiated a Buy call with a target price of Rs 2,472
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