The initial public offering (IPO) of Hyundai Motor India – billed as the largest IPO in India so far – made a disappointing debut on Tuesday, with its shares listing at a 1.5 per cent discount to their issue price of INR 1,960.
The stock opened at INR 1,931 on the BSE and INR 1,934 on the NSE, falling short of investor expectations amid ongoing market volatility and concerns about the company’s valuation, market participants said.
They said the Hyundai issue debut was in line with the expectations of analysts, but contrary to what the grey market premium the issue garnered.
The $3.32 billion (INR 278.70 billion) public offering was subscribed 2.3 times, achieving full subscription only on the final day, reflecting tepid interest from investors.
The issue, especially, saw tepid interest from retail investors, who subscribed to just 50 per cent of their allotted shares.
Institutional buyers, particularly Qualified Institutional Buyers (QIBs), propped up the offer, subscribing seven times their allocation.
However, this institutional push wasn’t enough to prevent a muted listing, traders said.
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