India's biggest IPO now trades 10% below its issue price, posts worst month since listing

Shares of Hyundai Motor India Ltd. are down another 2.5% on Monday, March 30, and have now declined in six out of last seven trading sessions. With this, the stock has extended its losses below its issue price of ₹1,960.

The stock has declined over 19% so far in the month of March, which is the worst month that the stock has had, since its listing in October 2024.

Hyundai Motor India is the country's biggest IPO, with size of over ₹27,000 crore, that just about managed to see full subscription during its three-day period. The retail portion remained undersubscribed.

The US-Iran war has led to significant supply chain disruptions, which has impacted sectors across the board, including Autos.

For the automobile sector, steel forms 50% to 55% of the overall costs, where prices have remained stable. However, aluminium prices have seen a sharp jump in the global markets on fears of supply disruptions due to Iran's attacks on key production facilities in West Asia.

In addition to this, the freight forms 3% to 5% to overall costs, and insurance premium costs have also seen an increase. The depreciation in the currency also increases US Dollar-denominated costs.

On the charts, Hyundai Motor India trades below key moving averages and has also slumped into "oversold" territory. The RSI on the charts is now at 24. An RSI reading below 30 means that the stock is "oversold."

29 analysts have coverage on Hyundai Motor India, with 24 of them having a "buy" rating on the stock, three saying "hold" and five having a "sell" rating.

Shares of Hyundai Motor India are trading 1.8% lower at ₹1,785 on Monday. The stock is down 38% from its post-listing high, which is at ₹2,890.

(With Inputs From Sudarshan Kumar)