Hyundai Motor’s IPO in India was underwhelming, with shares dropping nearly 5% to ?1,870 ($22.34) from the issue price of ?1,960 on their debut.
Despite raising $3.3 billion in India’s largest IPO, investor interest was mixed. Retail investors bought only half of their allocated shares.
Hyundai’s Indian unit is valued at around $19 billion after the offering, which involved selling a 17.5% stake. Analysts warned that the company’s high valuation could affect stock performance.
Concerns over declining consumer sentiment and a 9% drop in vehicle sales in September also impacted investor confidence.
Hyundai has been successful in India since the late 1990s, especially with popular models like the Creta SUV. The company aims to use the IPO funds for new products and R&D.
Hyundai’s journey in India, according to executive chair Euisun Chung, reflects a long-term commitment to the market.
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