Hyundai India Listing: Analysts Divided on IPO Performance as GMP Signals a Modest 3% Gain | What to Expect Post-Listing

Hyundai Motor India’s much-anticipated listing is creating a buzz as the first major auto company to go public in India since Maruti Suzuki’s listing 20 years ago. However, analysts have mixed expectations, as the IPO was fully subscribed only on the last day, receiving 2.3 times the bids. The issue is fully priced, and since it’s an offer for sale (OFS), Hyundai will not receive any of the proceeds directly.

Shivani Nyati from Swastika Investmart noted that while Hyundai has a strong position as the second-largest passenger vehicle manufacturer in India, the weak market sentiment and large IPO size might limit short-term listing gains. The grey market premium (GMP), which briefly turned negative, is now positive again at ₹67, indicating a modest 3% gain over the issue price.

Despite the underwhelming short-term outlook, analysts believe Hyundai’s long-term potential remains strong. The company’s focus on SUVs and future plans for electric vehicles, along with its well-established market position and R&D capabilities, are key strengths. Master Capital Services echoed this sentiment, stating that Hyundai’s leadership in the Indian market, combined with its robust fundamentals and growing demand for SUVs, makes it an attractive long-term investment.

The IPO consists entirely of an OFS, with the parent company, Hyundai Motor Global, selling 14.2 crore shares. Although Hyundai India won’t receive any funds from the IPO, the management has committed to using the proceeds for research, development, and innovation in future products.

Investors with a long-term outlook are advised to consider holding onto their shares post-listing for potential growth as the company aims to strengthen its position in the evolving electric vehicle market.