Stock price will be determined by investors, says Tarun Garg on weak Hyundai Motor India listing

Hyundai Motor India's issue attracted strong interest from sovereign funds, insurance companies, and mutual funds. However, the stock price will ultimately be determined by investors, said Tarun Garg, chief operating officer of Hyundai Motor India on the back of a weak stock listing on the bourses.

Hyundai Motor India shares made a weak debut on the exchanges on October 22 after listing at 1.32 percent discount at Rs 1,934 against its initial public offer (IPO) price of Rs 1,960 on the National Stock Exchange (NSE). At 2:50 pm, the stock was trading 6.83 percent lower at Rs 1,826.2 on the NSE.

Garg, in a media interaction, added that the size of the issue reflects the strong interest the company was able to generate from investors.

Brokerage firm Emkay Global Financial Services initiated coverage on Hyundai Motor India with a 'reduce' rating citing lack of major launches, higher royalty, and lower treasury income as reasons. All of this put together is expected to restrict earnings per share (EPS) growth moving ahead, said the brokerage firm.