Headline: Hyundai India Shares Slide at Market Open After $3.3 Billion IPO

Hyundai Motor India experienced a slight decline in its share value on its first trading day on the National Stock Exchange. The automaker's shares opened at 1,934 rupees, slightly below the initial public offering (IPO) price of 1,960 rupees. Throughout the day, the stock fell 2% further, trading at 1,920 rupees.

This market reaction followed India's largest-ever IPO, which raised $3.3 billion and saw demand exceeding two-fold. The enthusiasm from institutional investors contrasted with the indifference of retail investors, who were cautious due to concerns over the stock's valuation.

As India's second-largest car manufacturer with a 15% market share, Hyundai chose Mumbai for its first stock exchange listing outside its home country of South Korea. This stock market debut coincided with a period of significant gains in the Indian equity markets.

Despite the overall success of the IPO, Hyundai's market valuation lagged behind India's market leader, Maruti Suzuki, which holds a valuation of $48 billion. However, in terms of price-to-earnings ratios, Hyundai's valuation, at 26 times its 2024 fiscal earnings, is not far behind Maruti's multiple of 29 times.

Before Hyundai Motor India, the country had witnessed two major IPOs from Life Insurance Corporation and One97 Communications, the parent company of Paytm. Shares in these two companies also began trading at significant discounts.