The IPO of Hyundai India, the country's largest IPO, has been listed on the stock market today. Shares of Hyundai Motor India Limited, the Indian unit of South Korean car manufacturing company Hyundai, were listed in the market on Tuesday with a decline of more than one percent against the offer price of Rs 1,960. In such a situation, the investors whose names appeared in the IPO allotment have suffered huge losses.
The price range of Rs 1,865-1,960 per share was fixed for the Rs 27,870 crore IPO of Hyundai Motor India Limited. But it has disappointed investors on the listing. And even after listing it continues to decline. In such a situation, should you hold it or sell it? Let us know what the experts say…
The share was listed on BSE at Rs 1,931, which represents a decline of 1.47 percent from the offer price. Later there was some improvement in the stock and it reached a high of Rs 1,968.80 with a gain of 0.44 percent. The stock again declined by 0.74 percent and was trading at Rs 1,945.40. Whereas on NSE the share started with a decline of 1.32 percent at Rs 1,934.
The market cap of the company stood at Rs 1,57,807.67 crore in early trade.
According to market experts, even if there is no profit on listing, there can be good earnings in the long term. According to another expert, investors can earn by setting long term goals in shares.
An Economic Times report quoted Master Capital Services as saying that despite the flat listing, the company offers stable growth prospects amid adverse industry conditions, strong financial position and strong SUV product demand. In such a situation, there is a possibility of further earning.
Nomura has given a target price of Rs 2,472 on Hyundai Motor stock. According to the brokerage firm, the company is riding on style and technology. Its ongoing premiumization will provide high quality growth to the company. At the same time, keeping in mind the market share, Macquarie has given outperform rating and target price of Rs 2,235 on Hyundai Motor.
