Hyundai Motor India: The Air is Out of the IPO Plan

Hyundai Motor India's ambitious plan to raise up to $3.3 billion through an initial public offering appears to be losing momentum. Indicators in the unregulated gray market suggest insufficient demand, exacerbated by a less optimistic industry forecast. On Monday, shares of the Hyundai Motor subsidiary were traded at a premium of only 60 rupees over the set upper price level of 1,960 rupees (approximately $23.30) per share in the Indian gray market. This represents a dramatic decline compared to the premium of up to 1,000 rupees assessed by market participants just two weeks ago. Investors active in the gray market are increasingly concerned about this development, casting a shadow over the success prospects of the upcoming IPO. The expectation that the market would present a revitalized dynamic is now met with skepticism by some.