Mon Oct 21 04:18:14 UTC 2024: Hyundai’s recent IPO, valued at over ₹28,000 crore, saw disappointing public interest, with retail investors subscribing to only 50% of their share allocation and non-institutional investors taking 60% of theirs. The IPO’s success was primarily due to institutional investors who bid for more shares than available. Key factors for the lackluster response include high valuations, with shares priced between ₹1,865-1,960, translating to 26-30 times the company’s earnings forecasts, which is deemed expensive for an auto company, especially amid a demand slump in India’s car market. This could indicate waning sentiment in the primary market as secondary stock prices decline. Future IPOs, particularly Swiggy’s upcoming offering, will be closely monitored for trends.

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