How to Invest in Hyundai India Shares Effectively

Introduction 

Hyundai Motor India launched its IPO in October 2024, which was the India’s biggest IPO. But Hyundai India Shares performance after stock market listing remained inconsistent for investors. So let’s come, in this blog we will understand in detail about hyundai India’s Price, Future prospects, performance after listing.

Hyundai India IPO

IPO stands for Initial Public Offering, which means that it is a method to sell a company’s shares to the public. When a company decides to go from private to public. It sells its shares in the stock market, which people can buy. IPO has two types that are Fresh Issue and Offer for Sale (OFS). In Fresh Issue, new shares comes in the market, by which company gets money and in offer for Sale, old shareholders can earn money by selling their shares.

Hyundai IPO Overview 

IPO Issue Price: Rs 1,960 per share

Total Issue Size: Rs 27,870 crore

Subscription Status:

Overall Subscription: 2.37 times

Qualified Institutional Buyers (QIBs): 6.97 times

Retail Investors: Sirf 50%

Stock Market Listing Performance 

Listing Price: Rs 1,931 (BSE) and Rs 1,934 (NSE)

Listing Day Performance: 1.5% off

First day closing: Rs. 1,820.40 (down 6%)

Next day recovery: 6% jump, up to Rs. 1,928

Hyundai India Shares fell on the day of listing in the stock market, but recovered the next day. Due to this, investors did not get a clear signal that stock will move ahead or not.

Challenges And Risks 

1. Operational Challenges:

Hyundai Motor India will face many challenges for growth such as production capacity constraints, new look in new models, minor updates, electric vehicle and hybrid segment. Hyundai Motor India will have to pay attention to these challenges. Whose company can create its strong position in the market.

2. Weak Stock Market Listing And Volatility: 

When Hyundai India Shares were listed, investors did not get the expected listing benefits. The Hyundai India Shares issue price was ₹1,960 per share, but at a discount of 1.5% to the stock. The stock fell 6% on the first day to ₹1,820.40. The stock recovered 6% the next day, which was a mixed signal for investors.

3. High Competition From Tata, Maruti Suzuki And Mahindra:

There is now more tougher competition in front of Hyundai in the automobile market in India. Earlier only Maruti Suzuki was the main competitor of Hyundai, but now Tata Motors and Mahindra are also growing in the market. If Hyundai does not launch more innovative models, competitors may take its market share, which could be a negative factor for the share price.

4. Weak Interest of Retail Investors:

The response of retail investors to buy Hyundai’s IPO was not at the expected level. The retail section of the IPO saw only 50% acceptance, which shows that small investors were not confident about the stock. Generally, if retail investors do not show interest in a stock, then its long-term demand may also reduce.

Current Market Capitalization And Future Outlook 

After the launch of Hyundai Motor India’s IPO, its market capitalization has increased ₹ 1.59 lakh crore. Due to which it has become one of the top automobile companies of India. This valuation reflects Hyundai’s strong brand value, leadership in the SUV segment and long-term growth potential. If Hyundai expands in the EV segment, launches new models and increases production capacity, its share can grow well in the long-term. But volatility and competition can create risks for short-term investors.

Conclusion 

Hyundai India is a strong automobile brand, which holds 15% share in India’s passenger vehicle market. It has a strong hold in the SUV segment and its focus on premium models supports, its long-term growth prospects. There was strong interest from institutional investors during the IPO, which shows that large investors are quite positive about the future of Hyundai.