Hyundai Motor Share Price Recovers from Lows; $10 Billion Worth of Shares Unlock After Lock-In Period Ends

The share price of Hyundai Motor India Ltd. witnessed a notable movement as the company’s shareholder lock-in period officially ended. This marks a significant milestone for what is still the largest Initial Public Offering (IPO) in Indian history.

As of 2:08 PM on Monday, the stock had recovered from an intraday low of ₹1,647.10 and was trading up by 1.35%, reflecting investor interest and market anticipation around the unlocked shares.

Nearly 51 Crore Shares Now Eligible for Trading

According to reports, a total of 50.78 crore shares—amounting to an estimated $9.79 billion—have now become eligible for trade as the six-month and beyond lock-in period for certain shareholders has concluded. This development significantly increases the free float of the stock in the open market.

Lock-in periods typically restrict early investors or insiders from selling their shares for a specific time following an IPO, ensuring market stability. The release of such a large number of shares into the market often leads to heightened trading volumes and can influence price movement depending on demand and supply dynamics.

Shareholding Pattern: December Quarter Snapshot

While the shareholding pattern for the quarter ending March 2025 is yet to be disclosed, data from the December 2024 quarter offers insights into the investor landscape:

• Domestic Mutual Funds held a 5.1% stake.

• Life Insurance Corporation (LIC), India’s largest insurer, held a 1.21% stake.

• Foreign Portfolio Investors (FPIs) collectively held a 6.7% stake.

• Retail Investors—defined as those with investment value up to ₹2 lakh—held 3.22% across 12.4 lakh shareholders.

This distribution highlights a wide investor base, comprising both institutional and retail participants.

Read More: What Is The Lock-In Period In An IPO?

Promoter Holding Remains Above Regulatory Threshold

Despite the unlocking of a substantial volume of shares, Hyundai Motor India’s Korean promoters continue to hold 82.5% of the company. This is comfortably above the 75% threshold mandated under the Minimum Public Shareholding (MPS) norms laid out by the Securities and Exchange Board of India (SEBI).

The MPS norms require all listed companies to maintain a minimum public shareholding of 25%, ensuring adequate liquidity and retail participation in the market.

Conclusion 

As the market adjusts to the increased float, all eyes will be on Hyundai Motor India’s next shareholding disclosure, which is expected to offer deeper insights into how the investor mix may have changed post lock-in expiry. While the long-term implications are yet to unfold, the immediate response in the stock price indicates investor confidence in the company’s outlook.

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