The share in Hyundai Motor India Limited (NSE: HYUNDAI) which is the Indian division that is part of South Korean vehicle manufacturing Hyundai had a disappointing start in the market on the previous day.
The company’s share was listed at Rs 1,931 with a 1.47% premium to its issue price of Rs 1,960 and fell by 7% during trading.
However, on Wednesday, the stock climbed up to 6% and reached an intraday high of Rs 1928.15.
Meanwhile, the domestic brokerage firm has given a buy rating on this stock.
A renowned brokerage has advised buyers to purchase Hyundai Motor India with a goal price of Rs 2345.0.
Country’s Fifth Most Valuable Vehicle Company
Let us tell you that Hyundai Motor India Limited (HMIL) became the fifth most valuable vehicle company in the country by market cap on Tuesday, the day of its listing in the stock market.
Hyundai Motor India Limited’s IPO was subscribed 2.37 times until the last day of the offer.
The price band for Hyundai Motor India Limited’s (HMIL) Rs 27,870 crore IPO was fixed at Rs 1,865-1,960 per share.
An expert said that despite being listed at a lower price than the issue, the strong fundamentals of this company will continue to support its long-term growth prospects.
It Was India’s Largest IPO
It was the biggest IPO on India’s stock market. It surpassed the Rs 21,000 crore IPO of Life Insurance Corporation of India (LIC).
The qualified institutional buyers (QIBs) category received 6.97 times the subscription, whereas the quota for non-institutional investors received 60 % of the subscription.
The quota reserved for retail buyers was restricted to 50 %.
Hyundai Motor India Limited (HMIL) raised Rs 8,315 crore from large (anchor) investors before the issue opened.
Quick Fact
| Company name | Hyundai Motor India |
|---|---|
| Country | India |
| Parent company | Hyundai Motor (South Korea) |
| Market debut date | Tuesday |
| Market debut price | ₹1,931 |
| Issue price | ₹1,960 |
| IPO subscription | 2.37 times |
| Largest IPO | ₹27,870 crore |
| Price band for IPO | ₹1,865-1,960 per share |
| Day 1 market ranking by value | Fifth most valuable vehicle company |
| Anchor investment amount | ₹8,315 crore |
| IPO surpassed | Life Insurance Corporation (LIC) IPO |
| LIC IPO amount | ₹21,000 crore |
| Institutional buyer subscription | 6.97 times |
| Non-institutional investor quota | 60% |
| Retail investor subscription | 50% |
| Recent highest price | ₹1,928.15 |
| Recent performance change | Increased up to 6% |
| Possible target price | ₹2,345 |
| Analyst opinion | Buy rating |
| Long-term growth prospects | Supported by strong fundamentals |
| Market reaction on listing day | Fell by 7% |
Disclaimer: The website and its content are for informational purposes only and should not be considered investment advice.
