Hyundai Motor India Ltd’s (HMIL) IPO opened to a lukewarm reception, listing at a small discount to its offer price of Rs 1,960 and closing the day at Rs 1,811 on the NSE
HMIL’s IPO signals fading market exuberance, with only 2.3 times subscription, a sharp slowdown from the recent trend of IPOs being oversubscribed 10 times or more
The timing of the IPO may have been a factor in its underwhelming performance. The festive season tends to shift retail investors' focus towards consumption
HMIL’s valuation was considered high, with a price-to-earnings (PE) ratio of 27, compared to market leader Maruti Suzuki’s PE of 29
A slowdown in domestic retail sales and weak global growth present challenges for Hyundai’s plans to use Chennai as an export hub
Hyundai’s IPO performance raises questions about whether the market has truly shifted or if this is just an isolated incident