LIC was India’s largest IPO when it went public with a ₹21,000 crore ($2.45 billion) offering in May 2022. But records are meant to be broken. In October 2024, Hyundai Motor India’s ₹27,870 crore ($3.3 billion) initial public offering shattered the record set by LIC.
The Korean carmaker’s IPO was oversubscribed by 2.37 times, largely driven by institutional investors, who have ample liquidity and were attracted to the company’s strong product profile and EV strategy, whereas the state-owned life insurance behemoth’s IPO was oversubscribed by 2.95 times. The LIC IPO saw robust retail interest, with strong backing from individual investors, who were enticed by the company’s long-standing reputation and attractive pricing.
Interestingly, both LIC and Hyundai India Motor registered losses on the listing day but investment analysts note that both have the potential for long-term returns. LIC shares were listed at ₹872 apiece on the NSE, down 8.11% from the issue price of Rs 949 whereas on the BSE, the shares started trading at ₹867, at a discount of 8.62%.
Hyundai Motor India shares were listed at ₹1,934 on NSE and ₹1,931 on BSE, against the issue price of ₹1,960. On the NSE, Hyundai Motor India shares reflected a 1.32 per cent discount to its IPO price, while on the BSE, the stocks marked a 1.47 per cent discount.
“Hyundai Motor India’s IPO pricing gave retail investors jitters, and the company’s share price declined quickly upon hitting the market. But it is a long-term hold for future growth and profitability. With the substantial investments and profits generated by LIC , I believe, a longer term LIC is a good buy. So, make a winning long-term stock pick, not quick profits!” – CA Amit Kithania
On 4 November, Hyundai Motor India closed at ₹1814.55, while LIC closed at Rs 924.55. According to various sources, the share price objective for Hyundai Motor India by 2025 is between ₹2,160 and ₹2,345, while for LIC it is expected to be between ₹1,763 and ₹2,135 by 2025.
Hyundai has been operating in India since 1996 and is currently number two in the Indian passenger vehicle market, with a market share of 14.9%. LIC, which has been operating since 1956, is the largest life insurance company in India and one of the world’s top life insurance companies.
