Hyundai Motor India Ltd launched its shares on the stock market on October 22, with high anticipation from investors. However, the shares didn’t perform as expected. The shares were initially priced at ₹1,960, but on the BSE (Bombay Stock Exchange), they opened lower at ₹1,931, which is a 1.47% below its issue price. While there was a brief increase in the share price to ₹1,968.80, it later dropped by 7.16% to ₹1,819. Similarly, on the NSE (National Stock Exchange), the stock opened at ₹1,934, or 1.32% below the issue price, and dropped further to ₹1,807.
By the end of trading on October 22, Hyundai Motor India’s total market value, or market capitalization, on the NSE was ₹1,49,913.85 crore, reflecting a loss of ₹1,986.67 crore from the morning’s valuation. Analysts believe the large size of Hyundai’s IPO and overall market conditions have been less favorable, affecting demand for new IPOs, but long-term prospects remain positive due to Hyundai’s strong financial position and its strong fundamentals and focus on the SUV segment.
Hyundai Motor India’s debut, 13.99 lakh shares were traded on the BSE, and 2.31 crore shares were traded on the NSE. Experts suggest that investors should wait before buying the stock, as the “initial supply pressures” from high trading volumes may have temporarily depressed the price. Brokerages like Motilal Oswal and Nomura have issued ‘buy’ ratings, setting target prices of ₹2,345 and ₹2,472 respectively, citing potential growth for long-term holders.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult a professional before making investment decisions.
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