• Hyundai Motor India's market debut is in focus amid a muted start in Indian stock markets.
• Hyundai's $3.3 billion IPO, oversubscribed by more than two times, is the largest in Indian stock market history.
• Hyundai Motor India, the country's No. 2 carmaker, is set to enhance its local competitiveness through this listing.
• Hyundai's aggressive investments and plans for EV charging stations in India could potentially influence market dynamics.

Indian stock markets opened with a muted start on Tuesday, with the spotlight on Hyundai Motor India's market debut. The lackluster earnings and sustained foreign selling have been weighing on the markets, while escalating Middle East conflict has been dragging global equities lower overnight. The NSE Nifty 50 opened 0.07% higher at 24,798.65 points, while the BSE Sensex was up 0.1% at 81,253 points. However, seven of the 13 major sectoral indexes declined at the open, with the losses being marginal.

The broader, more domestically focused small-caps and mid-caps fell 1% and 0.3%, respectively. This trend reflects the cautious sentiment in the market, which has been witnessing profit-taking since hitting record high levels on September 27. The dull earnings and foreign flows directed from India to China on the recently-announced stimulus measures and relatively cheaper valuations have also been weighing on the market.

Foreign outflows from Indian equities continued for the 16th consecutive session on Monday. This has added to the cautious sentiment in the market, which is also being influenced by global factors. Asian markets opened lower on the day, with the MSCI Asia ex- Japan index dropping 0.5%. Wall Street equities logged losses overnight as caution loomed on rising geopolitical tensions in the Middle East.

Hyundai's Milestone IPO

In this scenario, the market debut of Hyundai Motor India, the country's No. 2 carmaker, is in focus. The company's $3.3 billion initial public offering (IPO), at an issue price of 1,960 rupees, was oversubscribed by more than two times last week. This listing marks a significant milestone for Hyundai Motor, as it is the company's first listing outside of South Korea. Moreover, it is the largest IPO in the history of the Indian stock market, surpassing the previous record set by the Life Insurance Corporation of India (LIC) in 2022, which raised $2.5 billion.

Hyundai Motor India is poised to make its debut on the Indian stock market on Tuesday. The company's shares are set to commence trading following the successful completion of its $3.3 billion IPO subscription process last week. This listing marks a significant milestone for Hyundai Motor, as it is the company's first listing outside of South Korea. Moreover, it is the largest IPO in the history of the Indian stock market, surpassing the previous record set by the Life Insurance Corporation of India (LIC) in 2022, which raised $2.5 billion.

The IPO price band has been fixed at Rs 1,865-Rs 1,960 per share, and the entire proceeds will go to the promoter, as it is a pure offer for sale (OFS). This is a significant development for the company and the Indian stock market, and it will be interesting to see how the market responds to this debut.

Hyundai's Future Plans and Market Impact

India plays a crucial role as a key global production base for Hyundai Motor. In 2022, the company produced 765,000 vehicles in India. Hyundai Motor India is currently the second-largest carmaker in the country, following Japan's Maruti Suzuki. Industry experts are closely monitoring whether the company can enhance its local competitiveness through listing on the Indian stock market.

Hyundai Motor has been making aggressive investments in India in recent years. Last year, the company acquired General Motors' manufacturing plant in Pune, India. The facility is currently undergoing upgrades with a smart manufacturing system, with the goal of achieving an annual production capacity of over 200,000 units. Once the Pune plant becomes operational in the second half of next year, Hyundai Motor India will have a combined annual production capacity of 1 million units, leveraging both the Chennai and Pune plants.

In addition to expanding its production capabilities, Hyundai Motor plans to increase the number of electric vehicle (EV) charging stations in India to 485 by 2030. The company has also entered into a strategic partnership with Indian battery giant Exide Energy this year, alongside its affiliate Kia Corp.