Indian auto stocks experienced a robust rally today following the announcement that Hyundai Motors has filed initial papers with SEBI for its upcoming initial public offering (IPO). Stocks such as Mahindra & Mahindra, Apollo Tyres, and Ashok Leyland gained over 1%, while Eicher Motors and Hero Motocorp traded marginally higher.
Hyundai Motor’s Indian subsidiary has filed for regulatory approval to list on the Mumbai stock market, potentially setting the stage for the country’s largest IPO. The proposal includes the South Korean parent company selling as much as a 17.5% stake.
If approved, Hyundai would be the first automaker to go public in India since Maruti Suzuki’s listing in 2003, marking a significant milestone in the Indian automotive industry.
Hyundai’s draft prospectus omits details regarding the IPO pricing and the company’s valuation. Nonetheless, media sources suggest Hyundai’s target fundraising could range between $2.5 billion and $3 billion, with a prospective valuation reaching up to $30 billion. If achieved, this would make it one of India’s largest IPOs, following the $2.5 billion issue by the Life Insurance Corporation of India in 2022.
Auto Stocks Today
Today, a mixed trend was observed among auto stocks on the Indian stock market. Mahindra & Mahindra, Apollo Tyres, and Ashok Leyland saw their shares rise by more than 1.5%, reflecting strong investor interest. Meanwhile, Eicher Motors and Hero Motocorp experienced marginal gains in their stock prices.
On the other hand, stocks such as Bharat Forge, Maruti Suzuki India, and TVS Motors traded in the red, indicating a decline in their share prices compared to the previous session. The varied performance across these companies mirrors the diverse investor sentiment prevailing in the auto sector today.
Market analysts attribute the upward movement in Mahindra & Mahindra, Apollo Tyres, and Ashok Leyland shares to positive market dynamics and sector-specific news. Conversely, the decline in stocks like Bharat Forge, Maruti Suzuki India, and TVS Motors may be influenced by profit-taking activities or broader market trends.
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