Hyundai Motor India Ltd. (HMIL) made its much-anticipated debut on the Indian stock market on October 22, 2024, opening at ₹1,934 on the National Stock Exchange (NSE), which is a 1.3% decline from its issue price of ₹1,960. On the Bombay Stock Exchange (BSE), shares opened even lower at ₹1,931, marking a 1.5% drop. By the end of the trading day, HMIL's stock fell to ₹1,820.40, reflecting a 7.1% loss from the issue price and leading to a market capitalization of approximately ₹1,47,915 crore.
The IPO, which raised ₹17,870 crore (approximately $3.3 billion), was a 100% offer for sale by its promoter, Hyundai Motor Company, making it the largest IPO in Indian history. Despite being oversubscribed more than two times, retail investors showed limited interest, purchasing only half of the allocated tranche.
The disappointing debut coincided with a broader selloff in the Indian stock market, as the Sensex plummeted over 900 points and Nifty fell below 24,500, erasing around ₹9 lakh crore in investor wealth. Major companies like Adani Enterprises and Tata Steel were among the top losers.
Hyundai's Executive Chair, Euisun Chung, emphasized the company's long-term commitment to India, stating, “From the beginning, we knew India was the future.” However, challenges persist, including declining urban consumer sentiment and a reported 9% drop in retail vehicle sales in September 2024. Despite these hurdles, Hyundai remains a significant player in the Indian automobile market.