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Tag: Indian Equity Market

  • Hyundai IPO Sees Lukewarm Response From Investors On Day 1 | Companies News

    New Delhi: The initial public offering (IPO) of Hyundai Motor India saw a lukewarm response from investors on Tuesday, with the issue subscribed 0.18 times or 18 per cent on Day 1 of the subscription.

    The company aims to raise up to Rs 27,870 crore, making it the largest-ever IPO of the Indian equity market history since 2022, when Life Insurance Corporation of India (LIC) raised Rs 21,000 crore.

    It is open till October 17, and the IPO price band has been fixed at Rs 1,865- Rs 1,960 per share.

    One lot of Hyundai Motor India’s IPO has seven shares. After the subscription window closes, the share allotment is expected to be finalized on October 18. The shares will be credited to demat accounts on October 21.

    Hyundai Motor India shares are likely to debut on stock exchanges on October 22. The maiden share sale will be a full offer for sale (OFS). This is the first offer from an automaker to list in India in over two decades and the entire proceeds will go to the promoter.

    Hyundai Motor India raised approximately Rs 8,315 crore from anchor investors on Monday, ahead of its IPO. The company allotted 4.24 crore shares at Rs 1,960 apiece to 225 anchor investors, according to the company statement.

    Hyundai Motor India held a 14.6 per cent market share in the domestic passenger vehicle (PV) market in Q1 FY25, second to Maruti Suzuki which has a 41 per cent share in this category. However, Hyundai Motor India is the market leader by volume in the mid-size SUV segment with around 38 per cent share as on June 2024.

    It is also India’s second-largest exporter of PV from April 2021 till June this year. In FY 2023-24, the company sold 7.77 lakh vehicles, of which 21 per cent was exported to countries like Africa, the Middle East, Europe and Latin America.

    Hyundai Motor India has 1,366 sales points and 1,550 service outlets in India. The company’s revenue in the financial year (FY) 2023-24 was Rs 69,829 crore. During this period, the company made a profit of Rs 6,060 crore and the company’s margin was 13.1 per cent.

    India’s second-largest carmaker’s revenue in the first quarter of FY 2024-25 was Rs 17,344 crore. During this period, the company made a profit of Rs 1,489 crore and the margin was 13.5 per cent.

  • FPI Turns Positive In June With Rs 12,170 Crore Investment, But 2024 Net Investment Remains Negative | Economy News

    New Delhi: Foreign Portfolio Investment (FPI) in the Indian equity market turned positive in June with a net investment of Rs 12,170 crore, according to data from NSDL. The data highlights that by June 21, FPIs had injected this amount into the equity market for the month. However, the overall net investment for the calendar year 2024 remains negative, with net selling amounting to Rs 11,194 crore.

    On the last trading session of the previous week, FPIs invested Rs 2,250.20 crore in the Indian markets. The shift in FPI behaviour has been particularly noticeable since June 10, influenced by the election results. (Also Read: Gautam Adani’s 2024 Salary Revealed – Less Than Some Of His Own Employees! Find Out Here)

    “Foreign Portfolio Investors (FPIs) have altered their position in the equity market following the election results, injecting Rs 23,786 crore since June 10th. There are three primary reasons for this positive inflow. First, the continuity of the government assures ongoing reforms. (Also Read: Kolkata Struggles With Soaring Vegetable Prices Due To Scanty Rainfall; Full Details Inside)

    Second, the Chinese economy is decelerating, as evidenced by a 12 percent decline in copper prices over the past month. Third, certain block deals in the market have been eagerly taken up by FPIs,” said Sunil Damania, Chief Investment Officer, MojoPMS.

    In contrast, may saw FPIs withdraw Rs 25,586 crore from the equity market, while in April, they were net sellers with a withdrawal of Rs 8,671 crore. This trend of outflows had created a cautious atmosphere in the market.

    Market experts note that the recent FPI inflows are concentrated in a select few stocks rather than being spread across the market or sectors. They believe that high valuations currently commanded by the Indian equity market will constrain FPI inflows. While June’s figures show a positive net investment, the overall sentiment among FPIs remains one of cautious optimism, tempered by valuation concerns.

    This strategic approach by foreign investors highlights their close monitoring of economic indicators and the government steps before the presentation of budget. As the year progresses, the balance of net investments will likely depend on the evolution of these factors, particularly in the context of global economic conditions and domestic policy continuity.