Several factors contributed to the decline in Hyundai Motor India’s shares following their IPO debut:

  1. Weak Retail Demand: The stock faced a muted response from retail investors, with only half of the reserved portion being subscribed. This lack of retail enthusiasm affected market confidence, contributing to the share’s decline.
  2. High Valuation Concerns: Some investors may have felt that the stock was overvalued at its issue price, leading to lower participation during the IPO and in early trading.
  3. Market Conditions: Broader market conditions and investor sentiment towards IPOs during that period also played a role. Global economic uncertainties or domestic market factors may have influenced investors’ risk appetite.
  4. Profit-Taking: After the record-setting IPO, some early investors might have engaged in profit-taking, leading to selling pressure and pushing down the stock price.

These combined factors led to a drop of up to 6% on the debut trading day despite Hyundai’s strong market position in India.